Latest news with #penaltyrates
Daily Mail
18 hours ago
- Business
- Daily Mail
Major change to pay rates proposed in Australia: What it means for you
Bosses are demanding that work-from-home staff give up penalty rates in an explosive push that could change how millions of Aussies are paid. A fiery new industrial showdown is brewing as employers demand that staff who work from home give up penalty rates and other hard-won entitlements, arguing that the flexibility of remote work makes them obsolete. The proposed changes to the clerks' award would affect 1.8 million administrative and IT workers. Business NSW has lodged an application with the Fair Work Commission to scrap strict rules around minimum hours and other award conditions for remote staff, claiming current workplace laws are outdated and don't reflect the new era of flexible work. It marks the first official attempt by employers to rewrite pay protections for the work-from-home generation, in what could become a game-changing test case for the Australian workforce. Australian Business Lawyers and Advisors CEO Nigel Ward, representing Business NSW, said the rules affecting working from home, last created for clerical and administrative employees in 2009, are impeding flexible working arrangements and unfairly punishing employers. 'When an employer governed by certain awards allows a working parent to pick up the kids from school, take their car for a service or run errands for an ageing parent, they may be in breach of the award,' he said. 'When an employee chooses to work at 6.30am or to shift their normal hours until 9.30pm to make up for that time, the boss may again be in breach – flexibility for the employee while the boss is obliged to follow work rules designed for the 9-5 office environment.' Business NSW said the proposed changes would only apply at the employee's request, rather than being imposed on them 'Even something as simple as when an employee, working at home, takes their lunch break can technically breach the clerks' award if it falls outside the prescribed times.' Mr Ward said that while this might go unnoticed day to day, it can become a legal issue if the employment relationship breaks down later. 'Employees have up to six years to make claims based on these technical breaches, exposing employers to unnecessary legal risk,' he said. 'As well as being obsolete, these rules are also prime examples of unnecessary red tape; the kind of red tape Treasurer Jim Chalmers should consider slashing as part of his Economic Reform Roundtable later in August.' Business NSW said the proposed changes would only apply at the employee's request, rather than being imposed on them. Among the proposed changes are removing the requirement that part-time and casual employees work a minimum engagement of three hours—as well as work those hours continuously. And enshrining greater flexibility by scrapping the obligation that part-timers working from home are provided with set hours that can only be changed by way of a written agreement. Mr Ward said the changes would also allow WFH employees to take meal and rest breaks at times that suit them, as opposed to being required to take meal breaks within the rigid times set by the award. Business NSW is also proposing the removal of allowances that would not ordinarily be required when working from home. These include first aid allowances, clothing and footwear allowances (necessary for employees in uniforms), and overtime meal allowances, which were traditionally required to compensate for the cost of purchasing a meal away from home. But Australian Services Union national secretary Emeline Gaske told the AFR it would fight the employers' proposal and labelled it 'a direct assault on roles that are held predominantly by women.' 'They want to use working from home as an excuse to strip away basic entitlements, from overtime pay to rest breaks and even minimum shift lengths,' she said. 'We will not allow big business to create a two-tiered system where employees who work from home are treated as second-class citizens. 'Working from home should be about modernising work, not undermining it.' A Swinburne University of Technology survey commissioned by the FWC found that three out of four employees working from home are dealing with personal matters during work time. It also found a significant increase in the number of organisations with formal WFH policies compared to pre-pandemic levels. Concerns regarding performance and productivity were the main reasons identified by employers for denying requests to work from home.
The Australian
3 days ago
- Business
- The Australian
Labor's Amanda Rishworth set to secure penalty rate protections as Greens signal support
Labor's penalty-rate protections are set to sail through the parliament after the Greens flagged their likely support for the proposal, as the Albanese government moves to capitalise on a left-leaning Senate crossbench. Employment Minister Amanda Rishworth on Thursday introduced legislation that removes the Fair Work Commission's power to strip penalty rates from awards, usurping recent attempts by employer groups to remove the entitlement in exchange for higher pay. The penalty-rate policy was unveiled by Labor during the federal election campaign, but was opposed by then-opposition leader Peter Dutton who described the change as a 'stunt' and accused the government of interfering with the decision-making of the industrial umpire. On Thursday, Tim Wilson, the opposition's freshly minted industrial relations spokesman, jettisoned that previous position, claiming the Coalition was yet to form a view on the legislation. Still, he argued the change would exacerbate the 'very serious problem' of rising unemployment, insisting the change 'isn't going to help'. Australia's key jobless measure climbed to 4.3 per cent in June – its highest level in more than three years – but still remains low by historical standards. Even without Coalition support, the legislation is expected to pass the Senate comfortably, with the Greens likely to back the measure. Together, Labor and the Greens hold 39 of the chamber's 76 seats. While noting that the changes were yet to be fully scrutinised by the Greens, the party's workplace relations spokeswoman Barbara Pocock flagged she was supportive of the reforms. 'We know these workers need protection, and they need more,' she said in Canberra, indicating the minor party would also pursue extra employee entitlements, including the right to work from home. The Greens have previously agitated for stronger protections to penalty rates, with the party's former leader Adam Bandt in 2017 introducing similar legislation to Labor that prevented the Fair Work Commission from cutting penalty rates. Ms Rishworth seized on the Coalition's indecision during question time on Thursday, asserting it was 'disappointing' the Coalition had not made its position clear on the matter. 'They seem to be having a bob each way, on one hand supporting Australian workers, on the other hand talking Australian workers down,' she said. Earlier on Thursday, she said the change would not apply retrospectively, meaning workers who have already lost the entitlement won't have it restored. Read related topics: Greens Jack Quail Political reporter Jack Quail is a political reporter in The Australian's Canberra press gallery bureau. He previously covered economics for the NewsCorp wire. Commentary Chalmers is perfectly entitled to make political comments. But it's another thing to claim to have delivered 'a better living standard' when per capita GDP has declined in seven of the past nine quarters. Mining & Energy Environmental regulators have ordered NSW coal mines to dramatically cut emissions or face penalties, with fears the state will miss its climate targets.
News.com.au
24-07-2025
- Business
- News.com.au
Liberal Goldstein MP Tim Wilson says more consultation needed with small business on penalty rate ban
The Coalition has indicated it will delay Labor's proposed laws to ban the reduction of penalty and overtime rates in modern awards, with Liberal MP Tim Wilson stating more information was needed on the impact on small businesses. A new Bill, which was introduced by Employment and Workplace Relations Minister Amanda Rishworth on Thursday, will also override the Fair Work Commission (FWC) from substituting the entitlements if it reduces the overall take-home pay of even a single worker on a modern award. However, Mr Wilson, the Coalition's small business and industrial relations spokesman, accused Labor of trying to 'ram' the legislation through parliament and signalled the opposition was likely to push the Bill to an inquiry. While he confirmed he'd reviewed the legislation, Mr Wilson said Ms Rishworth was still unable to answer how the Bill would affect small businesses. 'There is a simple reality. There are no penalty rates on jobs that do not exist,' he said. 'The Coalition supports penalty rates. We support higher wages … but that isn't what we're getting from this government with their approach, where their focus is how they do their pay-offs as part of their legislative victory lap, rather than focusing on how to improve the economic conditions that list the standards of living and the wages of Australians.' While Mr Wilson said the Coalition would 'obviously talk to parties from across the parliament', the opposition had yet to take a firm stance on the Bill. Ms Rishworth urged the Coalition and Greens to support the legislation and said it was a 'key commitment' Labor took to the election. 'My message to the opposition is that they need to listen to the decision of the Australian people,' she said. 'The Australian people clearly back this government to get on with the job of getting wages moving and ensuring that Australians can earn more and keep more of what they earn.' In response, Mr Wilson said it was proper and 'standard' process to get an 'assessment of the impact of legislation'. 'This is standard, so they can make the claims about what their mandate may be, it doesn't mean it gives them a right to override the standard processes of legislative passage,' he said. As it stands, Labor will need either support of the Greens or the Coalition if it is to pass the legislation in the Senate. While the Greens have confirmed the party has reviewed the legislation, it has yet to reach a position. Greens workplace relations spokeswoman Barbara Pocock said the party was having a 'close look' at the Bill and would make a decision 'in the coming days'. She also pushed for stronger workers' rights like a four-day work week without a reduction in pay. Responding to whether the Greens would support pushing the legislation to an inquiry, she said the party would consider all options. 'This is a no-cost bill for small business, as I read it, but as I said earlier, I've just received the Bill,' she said. 'We're having a close look, and we will want to make sure that there are no unintended consequences and that we get the best possible Bill that we can for some of Australia's most vulnerable workers.' The election promise was prompted by a FWC review prompted by the Australian Retailers Association to allow senior management to take a 25 per cent wage increase above minimum award entitlements in exchange for overtime, weekend and public holiday penalty rates and rest breaks.
SBS Australia
24-07-2025
- Business
- SBS Australia
Labor to introduce penalty rates bill aimed at protecting millions of workers
A casual hospitality worker can expect to have weekend penalty rates of about $40 an hour protected under a bid to prevent take home pay for employees from being shaved. Measures to enshrine penalty and overtime rates in law will be introduced in the House of Representatives on Thursday by Employment Minister Amanda Rishworth. The bill aims to prevent variations to awards that would result in lower pay for workers. It will be among the first pieces of legislation introduced by Labor in its second term of power following the 3 May federal election. Workers can be entitled to higher pay rates when they are required to work particular hours or days, including weekends, public holidays or irregular hours. While rates can vary depending on an employee's specific award or agreement applicable to that industry, common pay rates for workers on a Sunday are double time (200 per cent) or time-and-a-half (150 per cent). A calculation of rates on the Fair Work Commission's website shows that for a casual hospitality worker, common penalties for a shift on Saturday are $40.85 per hour, while a day's work on Sunday could bring in $47.65 per hour. Protecting penalty rates was an Albanese government election pledge. Minister Amanda Rishworth says the bill will ensure the wages of about 2.6m workers are protected. Source: AAP / Mick Tsikas Rishworth said the bill will ensure the wages of about 2.6 million modern award-reliant workers are protected. "If you rely on the modern award safety net and work weekends, public holidays, early mornings or late nights, you deserve to have your wages protected," she said. "Millions of hard-working Australians rely on penalty rates and overtime rates to keep their heads above water, which is why this bill is so critical and should receive the support of both the opposition and the Greens." Labor's planned changes came after peak retail and business groups put forward proposals for large companies to opt out of providing penalty rates for staff in exchange for a raise on base levels of pay. Opposition employment spokesman Tim Wilson said the coalition supported penalty rates. "We will work through the legislation to make sure we consult the businesses and those it's going to impact to get the best outcome," he told AAP. Wilson said the absence of a regulatory impact statement, which lays out the potential impacts of the proposed changes, meant consultation was even more important to ensure it would be part of the future success of the economy. The Coalition also wants to assess how the changes would interact with the Fair Work Commission, which would be required to apply the new rules in addition to the modern awards objective in making its determination.
ABC News
23-07-2025
- Business
- ABC News
Penalty rates set to be secured
Sabra Lane: More than two million workers will have their penalty rates locked in under new laws being introduced into federal parliament today. The laws will stop an attempt by big retailers like supermarkets from negotiating to pay their workers a larger salary instead of penalty rates for overtime and weekend work. The major retailers lobby opposes the change, saying businesses want some certainty in what they pay their staff. Political reporter Isobel Roe. Isobel Roe: The Australian Retailers Association, which represents big supermarket chains such as Coles and Woolworths, wants to see less of a reliance on penalty rates. It's applied to the Fair Work Commission, proposing to allow some staff to opt out of penalty rates, overtime and some allowances in favour of a 35 per cent pay rise. But federal Labor will introduce legislation today to prevent that. That move is backed by the Shop, Distributive and Allied Employees Association. Their national secretary is Gerard Dwyer. Gerard Dwyer: The legislation will provide proper protection for lower paid workers working unsociable hours in the service sector like retail, like hospitality. Isobel Roe: The Retailers Association says it's not trying to remove penalty rates. It argues workers opting into an annual salary would gain financial stability. And businesses would have more certainty on worker wages, improving productivity. The shop union's Gerard Dwyer rejects that. Gerard Dwyer: It's got nothing to do with improving productivity. People are saying, oh, this will be simpler. But that's not the motivation. The motivation is to reduce the payment to lower paid workers who work unsociable hours. Isobel Roe: It's rare for the federal government to intervene in a Fair Work Commission matter. But in a statement, Workplace Relations Minister Amanda Rishworth says the government wants to protect the penalty rates of 2.6 million of the country's low paid workers. The legislation is likely to receive the support of the Greens, although there's been no decision made by the party yet. The Coalition's industrial relations spokesman, Tim Wilson, has been briefed on the bill and is not yet guaranteeing his party's support either. Tim Wilson: When the minister was asked whether it was going to have an impact on small business, she gave a very explicit firm commitment that it wouldn't. But we're not going to know that till we have a clear consultation with small business and hear that from them. No penalty rates are being paid on jobs that don't exist. Isobel Roe: Not all small businesses see it that way, like Nat Latter, who owns a bookstore in Perth. Nat Latter: We choose to stay closed on a public holiday because we don't make enough money on those days to cover penalty rates. However, we're happy to do that. We're happy to have the day off and for other organisations they might make a different choice. Isobel Roe: Labor's bill will be introduced to the lower house later today. Sabra Lane: Isobel Roe there.
