Award sets ‘balanced’ penalty rates for restaurants: Gillard

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Award sets ‘balanced’ penalty rates for restaurants: Gillard

The Federal Government has welcomed the AIRC’s selection of a ‘more balanced’ penalty rate standard for the restaurant industry in its draft modern award released on Friday.

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The Federal Government has welcomed the AIRC’s selection of a ‘more balanced’ penalty rate standard for the restaurant industry in its draft modern award released on Friday.
 
IR Minister Julia Gillard said the standard had been taken from within the range of conditions that presently apply to the industry in different states.
 
Significant changes
 
In its draft award the Commission has made significant changes the penalty rate regime for restaurants by:
  • setting the Sunday penalty rate for full-time and part-time employees at 150% (compared to the 175% under the hospitality award)
  • providing that casual employees will receive 250% penalty rate for public holidays (compared to 275% under the hospitality award)
  • providing that the 10% penalty rate for evening work is payable after 10 pm under the Restaurants Award, while under the hospitality award, it applies after 7 pm.
 
Huge and difficult job
 
Gillard said the government understands that modernising and simplifying the award system is a huge and difficult job, but that it needs doing ‘to ensure the nation is productive in the future’.
 
‘The Government has ensured that no employee can have his or her take home pay cut as a result of award modernisation by providing for take home pay orders,’ she said.
 
‘In the very limited circumstances where the AIRC has departed from the principles set out in the award modernisation request, the Minister has intervened.
 
‘Take concerns to AIRC’: Gillard
 
‘The Commission has engaged in an extensive two year consultation process and the Government urges stakeholders to continue to take their concerns to theAIRC.’
 
Together with the 10 legislated National Employment Standards, modern awards will apply from 1 January 2010.
 
Details
 
A statement on the draft awards and the two exposure drafts can be found online.
 
The AIRC has a dedicated webpage on modern awards generally.
 
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