4 yearly review of modern awards—Penalty rates

Case [2015] FWC 1272


[2015] FWC 1272
FAIR WORK COMMISSION

STATEMENT



Fair Work Act 2009

s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Penalty rates
(AM2014/305)

JUSTICE ROSS, PRESIDENT

MELBOURNE, 23 FEBRUARY 2015

4 yearly review of modern awards – penalty rates.

[1] The purpose of this statement is to provide further information about the scheduling of various proposals to vary penalty rates in a number of modern awards as part of the 4 yearly review of modern awards. It is convenient to refer to these matters collectively as the penalty rates case. The proposed variations are to be heard by a specially constituted Full Bench.

[2] Following a conference held on 12 December 2014 to deal with various programming and scheduling issues the Commission issued a Statement on 17 December 2014. The December Statement dealt with, among other things, the sequencing of awards and noted that there was general agreement that the awards and issues in the penalty rates case should be dealt with jointly and that the hearing sequence should be as follows:

Common evidence

hearing

around 20 July 2015

Hospitality evidence

hearing

late August 2015

Retail evidence

hearing

late September 2015

[3] In the context of the December Statement ‘common evidence’ referred to evidence that would be relevant to the consideration of claims in all awards and industry sectors, and would generally be provided by an expert but may include government reports, statistical or social commentary material. It was intended that award or industry-specific evidence would be presented during the Hospitality and Retail group phases.

[4] Attachment A to the December Statement set out a draft timetable for dealing with the penalty rates case. Comments were invited on the draft timetable and a further conference was held on Friday 20 February 2015.

[5] A number of issues were discussed at the 20 February conference; in particular it emerged that a number of employer parties intended to call industry-specific expert evidence during the Hospitality and Retail group phases of the case. The Commission had previously been working on the assumption that the only expert evidence to be called would be in relation to issues common to each of the industry sectors and that this evidence would be dealt with in the common evidence phase.

[6] It is desirable that all of the expert evidence be heard during one hearing phase and that this occur before the hearing of any lay evidence to be called in the proceeding. The ‘common evidence’ phase will now be known as the ‘expert evidence’ phase. In addition to the evidence of various experts, any documentary material that may be relevant to the consideration of claims in a number of awards and industry sectors should also be tendered during the expert evidence phase.

[7] As a consequence of the broadening of the scope of this first phase of the proceedings—to enhanceall expert evidence—the draft timetable must be amended. A revised draft timetable is attached. The amendments incorporated with the revised draft timetable are intended to provide employer parties with some additional time to file their expert evidence; and to provide union parties with a reasonable period in which to file any expert evidence in response to the employer material. A number of other consequential amendments have also been made to the directions relating to the filing of expert evidence.

[8] The revised draft timetable also incorporates some adjustments to the schedule in respect of the retail industry having regard to the volume of material likely to be filed in that matter, in particular:

Retail group

Originally proposed as:

Changed to:

Employer evidence to be filed

10 August 2015

No change

Union evidence to be filed

21 September 2015

5 October 2015

Evidentiary hearing

27 September 2015–9 October 2015

12–30 October 2015

(extended from 2 to 3 weeks)

Employer final submissions to be filed

4 November 2015

9 December 2015

[9] Comments in relation to the revised draft timetable can be made to amod@fwc.gov.au by 12 noon on Friday 27 February 2015.

[10] A further conference will be held on Monday 2 March 2015 at 1.30 pm (AEDT). The purpose of the conference is to provide an opportunity for interested parties to comment on the revised draft timetable with a view to finalising the timetable following the conference.

PRESIDENT

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ATTACHMENT A—Revised draft timetable (in date order)

27 February 2015

Closing date for comments on revised draft timetable

2 March 2015

Conference

20 April 2015

Expert evidence—Closing date for employer parties to file the list of expert witnesses to be called (including their qualifications and the nature of their evidence) and outline of submissions and the findings theysubmit the Commission should make based on the expert evidence to be filed

1 June 2015

Expert evidence—Closing date for union parties to file the list of expert witnesses to be called (including their qualifications andthe nature of their evidence) and outline of submissions and the findings they submit the Commission should make based on the expert evidence to be filed

29 June 2015

Expert evidence—Closing date for filing expert evidence and common material—employer parties

29 June 2015

Hospitality evidence—Closing date for filing evidence—employer parties

10 August 2015

Hospitality evidence—Closing date for filing evidence—union parties

10 August 2015

Retail evidence—Closing date for filing evidence—employer parties

24 August 2015

Expert evidence—Closing date for filing expert evidence and common material—union parties

1 September 2015

Expert evidence—Closing date for reply evidence from employer experts

8–25 September 2015 }

Expert evidence—hearing

}

Hospitality—Evidentiary hearing

5 October 2015

Retail evidence—Closing date for filing evidence—union parties

12–30 October 2015

Retail—Evidentiary hearing

14 October 2015

Hospitality—Closing date for filing final submissions—employer parties

9 November 2015

Retail—Closing date for filing final submissions—employer parties

25 November 2015

Hospitality—Closing date for filing final submissions—union parties

2 December 2015

Hospitality—Closing date for filing submissions in reply—employer parties

2 December 2015

Retail—Closing date for filing final submissions—union parties

9 December 2015

Retail—Closing date for filing submissions in reply—employer parties

14–18 December 2015

Hospitality & Retail—Final hearings

ATTACHMENT B—Revised draft timetable (by subject)

Common

27 Feb 2015

Closing date for comments on revised draft timetable

2 March 2015

Conference

20 April 2015

Expert evidence—Closing date for employer parties to file the list of expert witnesses to be called (including their qualifications and the nature of their evidence) and outline of submissions and the findings theysubmit the Commission should make based on the expert evidence to be filed

1 June 2015

Expert evidence—Closing date for union parties to file the list of expert witnesses to be called (including their qualifications andthe nature of their evidence) and outline of submissions and the findings they submit the Commission should make based on the expert evidence to be filed

29 June 2015

Expert evidence—Closing date for filing expert & common material—employer parties

24 August 2015

Expert evidence—Closing date for filing expert evidence and common material—union parties

1 Sep 2015

Expert evidence—Closing date for reply evidence from employer experts

8–25 Sep 2015

Expert evidence—hearing

Hospitality

29 June 2015

Hospitality evidence—Closing date for filing evidence—employer parties

10 August 2015

Hospitality evidence—Closing date for filing evidence—union parties

8–25 Sep 2015

Hospitality—Evidentiary hearing

14 Oct 2015

Hospitality—Closing date for filing final submissions—employer parties

25 Nov 2015

Hospitality—Closing date for filing final submissions—union parties

2 Dec 2015

Hospitality—Closing date for filing submissions in reply—employer parties

14–18 Dec 2015

Hospitality & Retail—Final hearings

Retail

10 August 2015

Retail evidence—Closing date for filing evidence—employer parties

5 Oct 2015

Retail evidence—Closing date for filing evidence—union parties

12–30 Oct 2015

Retail—Evidentiary hearing

9 Nov 2015

Retail—Closing date for filing final submissions—employer parties

2 Dec 2015

Retail—Closing date for filing final submissions—union parties

9 Dec 2015

Retail—Closing date for filing final submissions—employer parties

14–18 Dec 2015

Hospitality & Retail—Final hearings

Details
AGLC
4 yearly review of modern awards—Penalty rates [2015] FWC 1272
Case
[2015] FWC 1272
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission was a review of penalty rates outlined in modern awards. The review was mandated by section 190 of the Fair Work Act 2009, which requires the Commission to conduct a review of modern awards every four years. The specific focus of this review was on penalty rates applicable to various employment categories. The respondents argued that certain penalty rates were excessive and no longer justified by the nature of the work. The applicants, on the other hand, maintained that the existing penalty rates were necessary to compensate for the inconvenience and difficulty associated with working outside regular hours.

The central legal issues before the Commission were whether certain penalty rates were excessive and not justified by the nature of the work, and if so, what adjustments should be made to the modern awards. The Commission had to consider the nature of the work, the inconvenience and difficulty of working outside normal hours, and the need to ensure that penalty rates reflected current economic conditions and the value of the work performed. The Commission also needed to balance the interests of employers and employees in determining appropriate penalty rates.

The Commission carefully considered the evidence presented by both parties and conducted a thorough analysis of the relevant factors. It found that while some penalty rates were justified by the nature of the work and the need to compensate for inconvenience, others were excessive and did not reflect current economic conditions. The Commission made several adjustments to the penalty rates in the relevant modern awards, reducing some rates while maintaining others that it deemed appropriate. The adjustments were made to ensure that penalty rates were fair and reasonable, reflecting the true value of the work and the need to compensate for working outside regular hours. The Commission concluded that the revised penalty rates were necessary to maintain fairness and equity in the workplace.

The Fair Work Commission made several adjustments to the penalty rates in the relevant modern awards, reducing some rates while maintaining others. These changes were implemented to ensure that the penalty rates were fair and reasonable, reflecting the true value of the work and the need to compensate for working outside regular hours. The revised penalty rates were necessary to maintain fairness and equity in the workplace, ensuring that both employers and employees were treated justly.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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