4 yearly review of modern awards

The Fair Work Commission was required to determine the implementation of the reduction of Sunday and public holiday penalty rates in the hospitality and retail sectors. The parties to the proceedings raised a number of general issues and specific issues in relation to each of the awards. The Commission found that the penalty rates reductions should be implemented through appropriate transitional arrangements, which should be phased over a period of time and coordinated with the implementation of any increases in modern award minimum wages arising from Annual Wage Review decisions. The Commission rejected the proposition that the Penalty Rates decision should be set aside or not implemented. The Commission also rejected the proposition that the power to make transitional arrangements should be exercised in a manner which would ‘red circle’ the current penalty rates for existing employees. The Commission found that while the transitional arrangements determined would ameliorate the adverse impact of the Penalty Rates decision upon the employees affected, it would not remove that impact.