Question

litrature review on “Evaluating the extents of minimum wage implementation on hospitality industry in Australia."

Answer 1

The two recent decisions of the Fair Work Commission (FWC) state that the employers, especially in the hospitality and retail industries must confirm their minimum rate obligations to employees. These decisions include:

-- setting out the implementation timeline for the reduction in Sunday and public holiday penalty rates in several hospitality and retail awards; and

-- a rise in the minimum wage rate, inclusive of rates payable under all modern awards with effect from 1 July 2017 by 3.3%

A Full Bench decided to reduce the public holiday penalty rates for part-time and full-time employees, so that such employees’ public holiday rates will decrease from 250% to 225%. The rate on public holiday for casuals was reduced to 250%, thus casual employees rate on public holidays fall from 275% to 250% on 1 July 2017. In making final decision in regard to the timeframe for reducing the rates of penalty, the Full Bench rejected submissions by employer groups that the reduction need to be phased in over two years and the unions submissions that the implementation of the reduction has to be delayed for between two to four years. Furthermore it also rejected the SDA’s submission that current penalty rates has to be maintained for existing employees and should be reduced only for future employees, on the grounds that it would lead to disharmony and conflict between employees, and increase the burden of regulatory on business.