Workers in the hospitality, retail, and fast food sectors will soon feel the sting of Fair Work's decision to cut Sunday penalty rates and public holiday rates. This ruling was made after Fair Work's consideration of the recommendations put forward by the Productivity Commission.

The reductions will mean that full-time and part-time retail workers' original penalty rate of 200% will be reduced to 150%, while casuals will go from 200% to 175%.

Workers in the hospitality sector will be reduced from 175% to 150% for full-time and part-time employees. However, the penalty rate for casual workers will go unchanged.

While, full-time and part-time fast food workers will receive a Sunday penalty rate of 125%, instead of the original 150%, and casuals will go from 200% to 175%.

This decision to cut the Sunday and public holiday penalty rates for the retail, hospitality and fast food industries will take effect in July.

The government argues that the decision was made in order to reduce costs for smaller businesses and allow them to trade on Sundays. However, the opposition posits that it is an attack on working Australians and those that need the penalty rates to make ends meet.

Future Effects Of This Decision?

This decision will definitely leave a mark on both businesses and their workers, for good or for ill.

Businesses may benefit from the reduced staffing costs associated with the weekend. Small businesses, in particular, will benefit from the savings that this decision will generate. However, management will also need to be aware that this decision may also lead to an increase in absenteeism.

The slashing of Sunday rates for hospitality, retail, and fast food workers has the potential to lead to an increase in demand for labour hire services in these industries, as current employees will soon be less incentivised to sacrifice their Sundays to work. Understaffing may soon become an issue for businesses operating in these industries, causing them to look towards hiring more casuals to compensate for absences, and/or employing the services of labour hire agencies to cope with last-minute staffing needs. For more information on what labour hire is and its benefits, click here.

Only time will tell what the true effects of Fair Work's penalty rate cuts will be.

If you're looking for last-minute staff to give your business a helping hand, contact Workfast today!