Thursday, November 25, 2010

Extra Christmas Holiday? Penalty Rate confusion continues...

Political pressure to protect Christmas Day penalty rates continues to mount amid confusion over different approaches adopted by the states.

Previously when Christmas Day has fallen on a weekend, workers received penalty rates on substitute public holidays the following week.

Governments in NSW, Queensland, Western Australia, NT and Tasmania have already moved to pay workers Christmas Day penalty rates in addition to penalty rates for working on Monday, December 27. While the ACT, South Australian and Victorian governments have so far refused.
Confused yet? You’re not the only one!

The Australian Industry (Ai) Group told a Fair Work Australia hearing in Melbourne, on Wednesday, that there was potential for "public holiday chaos", with six states adopting five different approaches. Chief executive Heather Ridout said in a statement the submission was made to "avoid unnecessary cost and confusion".

The Ai Group argues that penalty rates should be paid on substitute public holidays and not on Christmas Day, Boxing Day, New Year's Day and Australia Day when they fall on weekends.

However, the Australian Greens have pushed the Federal Parliament to introduce a common standard across the country, whereby public holiday penalty rates are paid to all workers rostered to work on Christmas Day, regardless what day of the week it falls on.

Greens leader Bob Brown said it was unfair that workers in some areas be penalised just because their state hasn't set up fair treatment on penalty rates.

"People need fair compensation for giving up time with family and friends at Christmas," Senator Brown said.

From a business perspective, the continuing chaos over Christmas holiday trading leaves employers with a staff rostering nightmare. “Employers, struggling to manage Christmas and New Year rosters don’t know when penalty rates would apply, either for the weekend itself, or the substitute day, or for both”, advised Senator Abetz, Opposition Leader of the Senate.

For retailers the costs are significant, with Coles Supermarkets warning the NSW Government that it will lose $15 million in sales due to the current structure of the state's public holiday schedule, which will prohibit it from opening on Boxing Day.

The Ai Group's application, if successful, would offset any legislation passed by state governments.

Read more:
News.com.au, Smart Company, Herald Sun


Whatever the decision, Mitrefinch's Time Management System (TMS) takes the stress out of employee allowances and entitlement calculations via an in-built, fully customisable Award Interpreter. Easily calculate base and overtime pay, weekend and public holiday penalties, as well as leave loading and shift penalties, ensuring consistent application of your business rules. A direct interface to your external payroll application further reduces payroll administration and the potential for costly payroll errors.

For more information contact Mitrefinch Sales on 1300 884 831 or visit Mitrefinch Online

1 comment:

Mitrefinch APAC said...

Fair Work rejects proposal from the Australian Industry Group to harmonise penalty rate laws across all states and territories. Read more here: http://tinyurl.com/2fu35q2

Post a Comment