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Penalty rates decision delayed

Businesses will have to wait for another few months before they find out if they still have to pay Sunday penalty rates.

Restaurant, café and fast food owners were expecting the Fair Work Commission to rule this month on whether to cut Sunday penalty rates and bring them into line with rates for Saturdays in certain industries, a recommendation made by the Productivity Commission

Instead, the Fair Work Commission has put an additional hearing in September on its schedule, claiming the Australian Industry Group needed to provide more evidence in its case for reducing Sunday rates.

This means the commission is unlikely to reach a decision before December. There is a possibility that a decision might be pushed back to early 2017.

Employment Minister Michaelia Cash says the government is to leave the penalty rates issue to the commission.

The employers are arguing that penalty rate cuts are justified because of changes in society,

They are also saying reducing penalties will create more jobs.

An Ai Group survey provided to the commission found that most employees in all age brackets did not have a preferred day to work on the weekends and that employees would work more hours on a Saturday if offered, regardless of age. It also found that tost employees aged 30 years and younger would work more hours on a Sunday if offered and that the most common reason for preferring to work on Saturday over Sunday for aged between 16 and 17 was study and spending time with family.

Stephen Smith, head of Ai Group’s national workplace relations policy said changing penalty rates would be in line with preferences by fast food workers.

“A large proportion of the employees in the fast food industry are young people with study commitments, and they are not available to work during normal business hours,’’ Mr Smith told The Australian.

“Many employees in the industry prefer to work on weekends, including Sundays.”

by Leon Gettler, September 15th 2016