Those who work in industries that pay penalty rates are not low paid. 30 One side of the debate (the left) believes that the Government should regulate labour markets to ensure that the most vulnerable workers in our society are protected against greedy employers, and this will lead to a long term more equitable society. One of those with low control said: I was afraid my hours would get docked if I didn’t agree to work Sundays …. 25 Business owners therefore need to be proactive in their approach to compliance, to ensure that they are legally meeting their compliance requirements. 25 In the retail and hospitality industries alone, over 1.1 million workers regularly work on weekends. Most award interpretation tools on the market can be used for Single Rate Calculation. (JS, casual). For both sides this argument flares deeply held ideological principles and is seen as a skirmish on the much larger war on our nation’s attitude towards labour laws, the free-market and the role of government. Level 1 Employees under the Fast Food Award will see a reduction in Sunday penalty rates from 150% to 125% for full-time and part-time employees. A day worker is a worker who works their ordinary hours from Monday to Friday inclusive and commences work at or after 6AM and before 10AM. The high rate of underemployment raises serious questions as to how useful a measure the unemployment rate is these days of labour market “slack”. With the outcome of the decision expected to come into play later this year, it is crucial that business owners have the correct tools and processes in place to update changes to wage rates correctly, and better manage their labour costs to capitalise on the penalty rate reductions. The second aspect revealed by the interviews was control. (JL, part-time student and casual retail). If any of these sound familiar, you’re after an Award Rule Engine. Some had positive perceptions that principally derived from their social cohesion at work — that is, they worked with close friends or partners. The decision was handed down after more than eight months of deliberation, and comes after The Productivity Commission recommended bringing Sunday penalty rates into line with Saturday rates in 2015. A desire for more Saturday work and for less Sunday work was quite common amongst our interviewees. It’s called a rule engine because it’s based on different payroll rules that you configure, allowing you to pay staff at different rates across the week. I am trained on tills, floor, cosmetics and as a pharmacy assistant and yet I only make $11.50? The politics might be different but nothing has changed about the reasons employers and employees alike should reject a weakening of conditions. The first was the financial aspects. If everyone you employ is the same employment type (e.g. But wouldn’t that be offset by the gains in employment? Full time and part-time retail workers will have Sunday penalty rates reduced from 200% to 150%. Her research has focused on several areas of sociology including networks of power, gender, work and sustainability. “All my staff get paid a salary.” Public Service Announcement: Fair Work Crackdown. Sunday Penalty Rates: What’s really happening? Single Rate Calculators: Pays staff only single types of pay like weekday, Saturday and Sunday rates. This side of the debate worries that reducing penalty rates will be hurting those in society who need the money the most and should be rewarded at higher rates due to working more ‘unsociable’ hours. Weekend penalty rates are higher pay rates for employees who perform work on the weekend. If this is you, you’re in luck – you will not need an additional system for award interpretation! By Ben Schneiders and Royce Millar. What about the politics? Weekday Rate – Casual Public holiday rates for full-time workers in hospitality will be reduced from 250% to 225%, with no change for casual Public Holiday penalty rates. But will lower penalty rates on Sundays discourage Sunday work? Accessorial liability has been one of the preferred tools wielded by Fair Work recently, as it focuses on looking past the principal company to further down the supply and managerial chain. This involved workers across Brisbane and the Sunshine Coast, mostly Anglophone, from a range of backgrounds including young adults, students and those with and without dependents. Penalty rates on weekends were introduced in 1947 as compensation for making people work when others did not have to. ... How do other countries view the weekend? As such transitional arrangements for Sunday penalty rate changes will be made in the coming months. Four had “some control” (mostly these were students). The problem for the Labour party and particularly Shorten, is how much this fight relies on support from the Union movement. There are many institutional, practical and political factors at play which we will try to summarise in this article. This is where nobody works on weekends, receives overtime or penalty rates. With the outcome of the decision expected to come into play later this year, it is crucial that business owners have the correct tools and processes in place to update changes to wage rates correctly, and better manage their labour costs to capitalise on the penalty rate reductions. e-mail; 48. In different circumstances, they would not have worked as many Sunday as they did. Using an Hourly Wage Calculator, you enter the hourly rate for each employee. The answer is, “not really”. Can I calculate overtime based on an employee working outside their rostered hours? When staff pay rates go up (each year when the Fair Work updates minimum rates), are these updated automatically? I solely rely on my Saturday and Sunday penalty rates, in which I make the amount that I should be making without those rates, when considering the amount of work I actually do. Employees often get a higher pay rate when working: 1. weekends 2. public holidays 3. overtime 4. late nights shifts or 5. early morning shifts. Stay updated with the latest insights on frontline work, industry news, business templates, and other free resources. “I have to pay overtime, penalty rates or allowances,” or Sunday retail and hospitality workers are set for another penalty rate cut on July 1, but small businesses say the reduction is not enough to make much of a difference to their struggling operations. “I employ more than one type of employee,” or It’s really just for simple weekend rates) Overtime is when your employee works more than 38 hours per week or outside the ordinary hours listed in the employee’s agreement. This table shows how a Single Rate Award Calculator would calculate the cost of two shifts. He previously worked at the Australian National University and in the then Commonwealth Department of Industrial Relations, spending over five years in its Senior Executive Service. If you only employ salaried staff, a Salary Costing Tool is perfect for you. But the majority voiced concern about refusing Sunday work due to either job insecurity, the prospect of employer retribution or underemployment. When you enter a timesheet the system pays staff at the appropriate rate based on the days worked only. Penalty rates in the Restaurant, Hospitality, Pharmacy, Fast Food and Retail awards have been gradually changing since 2017. Are staff pay rates automatically updated in the linked payroll system? They acted to mitigate the negative effects of their predominantly involuntary Sunday employment. The 550 Kikki.K workers are covered by a new enterprise agreement approved last month. Don’t Become Recluse When You Work From Home, Stuck at home? Based on the times or days that they work? They were virtually incapable of working other times that would combine to create the same income they derived from Sunday work and were admittedly relying upon penalties to meet living expenses. The Bill intends to increase the maximum penalties for those found breaching the Fair Work Act. The Productivity Commission has recommended changes to weekend penalty rates, calling for Sunday rates to be brought into line with Saturday payments. His previous study was in the field of Psychological Science and he has recently completed a Bachelor of Arts majoring in Sociology with Honours, also at Griffith. A really good template will automatically keep your payroll software up to date based on Fair Work Award updates. But at this lower pay rate, they’d need to work 33% more hours to keep their Sunday income. A month after Prime Minister Malcolm Turnbull described penalty rates as ‘out-dated’, the Productivity Commission recommended changes for workers in the entertainment, hospitality and […] Does the system automatically update them on birthdays? Implicit in the idea that the “disutilities” of Sunday work are less than they were, and explicit in some of the employer evidence, is the notion that Sunday workers in retail and hospitality have choice as to when they work. Here is how Fair Work’s Pay Rate Calculator says you should have paid: According to Woolworths chairman Gordon Cairns, weekend penalty rates are an obstacle to job creation. A template contains all of the rules necessary to pay under a particular Fair Work Award. Weekend Penalty Rates. The debate on penalty rates cuts straight to the bone of modern political disagreement and draws a line straight down one of the most fundamental differentiators of right wing vs. left […], 4 January 2016    |    Awards & Rostering    |, The recent spate of Fair Work crackdowns has increased concern for small business owners, as the severity and prevalence of non-compliance and underpayment continues to increase. Most payroll systems (including MYOB and Xero) already include such a tool, so if this is you, you’re also in luck – you won’t need an additional system for award interpretation! (SD casual hospitality worker and student). This might come up if you run a very small business with only a few staff. The decision was handed down after more than eight months of deliberation, and comes after The Productivity Commission recommended bringing Sunday penalty rates into line with Saturday rates in 2015. Overall, we concluded that the majority of retail employees who would be affected by changes to weekend penalty rates are not students. Award Rule Engines: Does all of the above. (LJ, 31, casual retail worker and student). If you you have a Full Time employee (base $20/hour), and a Casual employee (base $20/hour + 25% casual loading = $25/hour). So, if they get the chance, then almost all additional hours made available on Sundays in existing workplaces would be taken up by existing workers. Most will require an employer to pay at least time and a half of the normal base wage for work performed on a Saturday and double time for employees who perform work on a Sunday. (It also doesn’t work if you have to pay overtime, penalty rates, deal with leave or accruals. However, be careful because this only works if you have a single employment type. So reducing penalty rates in retail will affect not only tertiary students but also a significant number of people who are likely to be dependent on this wage as their sole source of income. But there is still a substantial minority of Saturday casuals who are not students and who are dependent on the money. How Should We Respond to Workplace Change? Arguments against reducing Sunday penalty rates The other side of the debate (the right) believes the best path is to trust the power of the market to set labour rates, the argument is that the hardest workers will naturally attract the highest pay rates and encourage the labour force as a whole to be more productive. Sunday work, however, was seen as the way to “boost the coffers”. If passed, this legislation will see the maximum penalties for a company increase from $54,000 to $540,000, and maximum penalties for an individual increase from $10,800 to $108,000. It has demonstrated structural increases over time across the economy as part-time employment has grown. The Fair Work Commission has today announced that Sunday and Public Holiday penalty rates are to be cut across Hospitality, Retail, and Fast Food Awards, while Saturday penalty rates are to remain the same. Said one: I’ve been on this dodgy contract now for over six months and they knew I wanted to go on full-time when I started and made it seem like that would be possible…so I stuck around. Can I set different Saturday/Sunday multipliers for Full Time and Casual staff? Most are not really sure which award interpretation tool is right for their business. The move to shift powers of overall rate-setting to the confines of Canberra means that this debate is now being played out on the national stage. All of this is mixed in with an unpredictable cross-bench, who Turnbull will need to win the support of to push through any change. the fact that employees are exercising a choice, albeit one that is constrained by other considerations, Not Spotting a Narcissist in a Business Relationship May Cost You a Fortune. A summary of affected rates (including planned future increases) is provided below: evening hours (after 6pm on monday to friday) From 1 October 2019: 10% increase for casual employees: You should ask these questions before implementing a system so you don’t get burned 3 months down the track. Saturday Rate – Casual The Fair Work Commission has today announced that Sunday and Public Holiday penalty rates are to be cut across Hospitality, Retail, and Fast Food Awards, while Saturday penalty rates are to remain the same. Can you configure how long a shift must be “split” before this kicks in? Grumpy Motorist - February 24, 2017. Three students that reportedly exercised control over their schedule, and who perceived Sunday work as “kinda like any other day” (AC, casual hospitality worker), also had their availability largely curtailed through their studies. "With 15 per cent unemployment staring us down the barrel of the gun, the first priority is to get people back into work," he said. In this case, you enter each employee’s yearly salary, set rules about how leave accrues and the tool does the rest. In short, the employment effects of the FWC decision, to the extent that they exist, are very unlikely to offset the significant problems we already see, through our research, with Sunday work in retail and hospitality: low wages, underemployment, low employee control, and the “disutilities” of spending time away from friends and families. This is simple because staff are paid the same thing most pay runs. Fair Work recently imposed a $143,000 penalty against a Brisbane Business Owner and his former internal Payroll and Account Manager, after it was uncovered that they had deliberately underpaid […], 2 March 2017    |    Events & Media AU    |. While business owners have always been liable for such breaches, it is the first case of a payroll manager being penalised under accessorial liability. She is the author of many articles and papers as well as Capitalist Networks and Social Power in Australia and New Zealand (Ashgate, 2006), co-author of Women of the Coal Rushes (UNSW Press, 2010), and co-editor of Financial Elites and Transnational Business: Who Rules the World? This was particularly the case for full-time students, dispelling any idea that these were “non-career” employees whose needs were unimportant. The national debate on penalty rates is quickly shaping up to become a defining issue of the Turnbull government and the next Federal election. Many businesses remain closed on Sunday, because opening is unprofitable. Businesses looking to gain greater compliance comfort and oversight into their business should implement workforce management software solutions for peace of mind and security to managing and paying staff. Not all was bad. Keep in mind that if any of your staff ever get more than one pay rate in a week, an hourly wage calculator won’t work as well anymore (even if it doesn’t regularly happen). Saturday Rate – Full Time Salary Costing Tools: Used to calculate payroll when all your staff are paid a fixed salary. It’s easy to miss subtle wordings in Awards that require you to pay different rates at different times. When lay employers gave evidence to the FWC, it indicated they anticipated an increase in overall hours worked. 16. A good template will include all of the base rates for different levels of staff (each employee will have a minimum wage and the template should include this). However as soon as you have different kinds of staff, it stops working correctly. Saturday Rate – Full Time (1.5x) The majority of tertiary students who are employed work in either the retailing or hospitality (i.e. Casual Sunday rates for retail will also be reduced from 200% to 175%. You enter the multiplier for Saturday and Sunday shifts. We often chat to people who have looked at a few different award interpretation tools on the market. Get ready for the s**tfight. No changes will be made to Sunday penalty rates for Level 2 and Level 3 Employees under the Award. However, if you have multiple employment types, or other more complex pay requirements (eg. 20 This is common in white collar workforces like accounting firms. Saturday Rate – Casual (1.75x) Not only the ABS data, but also our interviews showed that underemployment was common. In this post, we’re going to take a look at the different kinds of award interpreters out there to help you understand what is important when looking for a tool for you or your clients. Staff at stationery chain Kikki.K will be the first employees covered by an enterprise agreement to directly face cuts as a result of the Fair Work Commission’s decision to cut weekend penalty rates. Now suppose — just suppose for a minute — that a 10% cut in wages would lead to a 5% increase in hours worked. So many are in no position to exercise genuine choice over working on Sundays. 20 Share on Facebook. … Changes to Sunday Penalty Rates Sunday penalty rates for full time and part time hospitality workers will be reduced from 175% to 150%, rates for casuals will remain the same at 175%. Even where respondents did report some control, it needed to be qualified. Then a 25% cut in Sunday penalty rates (which is what part-time workers in retail experienced) would lead to a 12.5% increase in employment … Single Rate Award Calculator’s are great if you have staff on a single employment type as all their multipliers will be the same. Source: The Fair Work Commission I’ve Worked In Banking, Recruiting, Software, And More. Evening work Monday-Friday, and Saturday: A casual employee is not entitled to the additional penalty payment for evening work and Saturday work in clause 29.4 but must be paid an additional 10% for work performed on a Saturday between 7.00 am and 6.00 pm. Changes to Public Holiday rates will come into effect July 1, 2017. Please check your email to confirm your subscription. Penalty rates changes. Some payroll systems include Single Rate Calculators, but most likely you’ll need an external system. Also, Public Holidays, if the calculator supports it. As the political mudslinging begins, this could prove to be particularly bad timing for Shorten following the damning finding of the Royal Commission into Unions. This is because it all boils down to what people mean when they say “employment”. This includes full-time, part-time, casual or shiftworkers. Hourly Wage Calculators: Calculates when staff get paid a single hourly rate for all hours worked. Do they pay penalty rates? Are you able to configure accrual for arbitrary leave types? I have looked around but without luck…it’s difficult to find the time to between work and Uni as they are. For those coming in to work on January 28, a spate of new penalty rates will need to be respected for workers in the restaurant, hospitality, pharmacy, fast food and retail industries. As a result, many would be forced to work Sundays regardless of the change to payment structures. (JM, ongoing-casual retail worker). 35 Public holiday rates for full-time workers in hospitality will be reduced from 250% to 225%, with no change for casual Public Holiday penalty rates. Changes to Public Holiday Penalty Rates If a Template has been built based on an Award, can I change the ordinary span of hours based on agreement with the majority of my staff? (Ordinary hours of work accrue superannuation and count towards overtime, while non-ordinary hours don’t. Just for specific employees? Of these, three were already holding down multiple jobs. Save. For more information regarding the Fair Work Act and regulations please visit the Fair Work site. Those against penalty rate cuts are generally very sceptical that business owners will create more jobs through the pay rate cuts, and see the proposed cut as a transfer of money from employee’s back-pockets into business owners’ wallets. Several factors seemed to have influenced the FWC’s decision. Base Rate – Full Time (1x) (Edward Elgar, 2012). For an Honours project, we also undertook or supervised qualitative interviews, using a snowballed sample of 15 Sunday workers from the retail and hospitality industries. After all, that is what appeared to motivate the FWC’s decision. Amongst our interviewees, four workers were seeking full-time employment. ... Sunday weekend penalty rates cut by Fair Work Commission. The qualitative interviews revealed some other aspects of Sunday work. However, it also covers different rates within the same day and for different employment types. By. A penalty rate for Sunday work was first implemented in Australia for working “unsocial” hours in 1919. In each case, public holiday rates replace any shift penalties. What are employees’ preferences, and why? However, these can vary depending on the type of job. It’s not the same as the number of “jobs”. Sometimes time and a half and sometimes double time are agreed to or offered but there is nothing in law requiring employers to pay extra per hour. Georgina Murray is associate professor in Humanities at Griffith University in Brisbane, Australia, in the Centre for Work, Organization and Wellbeing. He aims to continue producing academic contributions that focus on social justice within the realm of work, both locally and abroad. Can you configure automatic allowances (like Laundry Allowances) and manual ones (like Overtime Meal Allowances)? At a more practical level, the debate in Australia is concentrated on what to do about Sunday penalty rates which are paid at double time in some industries and whether to reduce those rates to be the same as Saturday rates. So yeah … the money is my motivator! If you have staff that get paid hourly and receive different rates on weekdays, Saturdays, and Sundays, you might be able to use a Single Rate Calculator. How To Write An Effective Follow-Up Email After Meeting With Someone, How I switched careers to become a software engineer in 11 months (and how you can too). This is the biggest Industrial Relations decision The Fair Work Commission has made in recent years. “My staff get paid the same hourly rate for all hours worked.” Losses of penalty rates would lead to losses of income for many low-income, non-students — as well as for students — with little power to respond. Fair Work has strict compliance guidelines and regulations regarding pay rates, payslip laws and staff leave entitlements. This started my overall disgust with the human race. Amongst the weekend workers who we interviewed, all were generally averse to working on Sundays one way or another. Can I configure different pay rates for junior staff? Level 1 Employees under the Fast Food Award will see a reduction in Sunday penalty rates from 150% to 125% for full-time and part-time employees. Warning: Be careful with this one. 5 ways to make money educating online. Amongst those working on Saturdays and Sundays in retail trade, students are disproportionately found amongst casuals. I never once received penalty rates for my work, not on public holidays or weekends, ever. It is hoped that reducing penalty rates will bring  about more ‘positive employment effects’ for businesses, and will “lead to increased trading hours, an increase in the level and range of services offered on Sundays and Public Holidays and an increase in overall hours worked.”. Base Rate – Casual (1.25x) Changes to Public Holiday rates will come into effect July 1, 2017. Weekday Rate – Full Time In 2017, all penalty rate calculations were slashed by about 25-50%. To do this, we first analysed data from the Australian Bureau of Statistics (ABS), using the Forms of Employment survey over the 2011–13 period. Advocates of the rate cut argue that although some employees would see less money in their take-home pay packet, the overall result will be lower unemployment; not only because more business will trade on Sunday, but because many businesses will choose to increase their service levels (by employing more people) when margins aren’t quite so slim. Over 700,000 workers will have their Sunday penalty rates slashed after the long-awaited decision was handed down on Thursday. There are four different kinds and the right one depends on how your staff get paid. The landmark cuts to weekend penalty rates in several industries will be phased in over the next four years, in a decision that has angered retailers and unions alike. (Most studies don’t suggest the effect would be that big, and some suggest the effect would be zero, but we’re just talking hypotheticals here.) Many were unable to secure their preferred schedule, which would have involved working fewer Sundays. Why do these only work for one employment type? Casuals will have a reduction from 175% to 150%. 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