Sunday Penalty Rate Cuts to be Phased-In

On Monday 5th of June 2017, the Fair Work Commission ruled that cuts to Sunday penalties rates will be phased in over the next three-four years, in select industries.

For employers in the Retail and Pharmacy sectors, the penalty rate cuts will be phased in over 4 financial years.

For employers in the Hospitality and Fast Food industries, the penalty rate cuts will be phased in over 3 financial years.

The penalty rate cuts will be transitioned as follows:


We understand some unions have indicated that they will challenge the Fair Work Commission’s decision and are seeking stay orders pending an appeal.  Any such appeal could further delay the transitional arrangements taking effect – Watch this space.

If you require assistance with determining the application, and implementation, of the penalty rate cuts, please contact our Workplace Relations Team.

This article was written by George Haros, Principal and Natasha Dessmann, Associate.