Federal Court Challenge Penalty Rate Cut

Table of Contents

Share at:

Only five days following the Fair Work Commissions’ penalty rate cuts coming into effect, the Victorian union United Voice, have launched a challenge against workers’ Sunday and public holiday penalty rate reduction.

Concerned about how changes to penalty rates will impact your business? Get in touch with an experienced business lawyer.

Background

The Fair Work Commission’s’ decision regarding penalty rates affects full, part-time or casual staff working in the retail, fast food, restaurant, hospitality and pharmaceutical industry. Although the penalty rate cuts, as of 1 July 2017, have been introduced they will not be completely implemented until 2019 or 2020, depending on the industry.

A more substantive breakdown on the Fair Work Commission’s decision regarding the penalty rate cut is explored in our previous guide on Changes Starting July 1, 2017. It must be noted that employees employed under an Enterprise Bargaining Agreements (EBA) need to ensure they are aware of how these changes will eventually impact on their employment agreements.

The Federal Court

The union, United Voice, argues that these award changes have had the biggest impact on the lowest paid employees. Further, the question whether the Fair Work Commission acted within its power in determining the award and whether the decision was reasonable.

The ACTU has backed this appeal, arguing that since the commission’s decision does not protect the lowest paid workers rendering the law broken. ACTU boss, Ged Kearney, claimed that the commission’s decision will be continually challenged until the decision to cut wages is reversed.

Federal Court Judge, Mordy Bromberg agreed on the need for the case to be expedited based on the nature of the claim. The judge has stated that a case will be heard by a full bench of three or five judges in September of this year.

Final Thoughts

It appears that both employees and employers will be waiting a long while before a decision is determined regarding the legality of the penalty rate cuts. In the meantime, business owners will need to be aware of the changes, effective 1 July 2017, and manage employee scheduling appropriately. Employees need to be aware of the impact that these changes will have, depending on their employment status and industry they are employed in.

Let us know your thoughts this latest challenge to penalty rate changes by tagging us at #lawpath or @lawpath.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Can I Sue For Lost Opportunity?

Yes, you can. However, the lost opportunity must arise from a contractual breach, misleading and deceptive conduct or negligence. See more.

Are Employers Liable When An Employee Makes A Mistake Due To Negligence?

Have you ever wondered if an employer is liable for their employee’s negligence? Read this article to find out.

Are Uber Drivers Employees?

Uber's popularity in the Australian market is increasing at an unprecedented rate. So are Uber drivers employees? Read our guide to find out.

Am I Still Covered by an Award if I Sign an Employment Contract?

Unsure about what an award is or whether it applies to you if you sign an employment contract? Keep reading to find out more.

A Guide on Joint Ventures for Australian Businesses

Considering a joint venture? Learn about types, advantages, setup processes, and key considerations for successful business collaborations in Australia.

How Do I Add a Director to My Company?

If your company is expanding, evolving, or changing direction, you might wonder how to add a director to the company. Here is our step-by-step legal guide!