Federal Court rules penalty rate and holiday pay cuts to stay11 October 2017
Today the Federal Court confirmed the validity of a Fair Work Commission (FWC) decision made earlier this year that cut penalty rates and holiday pay across a number of modern awards. Rejecting an application brought about by the relevant unions, the Federal Court accepted that the FWC properly exercised their powers to review modern awards in making the decision.
In practical terms, the cuts to penalty rates and holiday pay that came into effect on 1 July 2017 will remain in force. The affected industries include hospitality, retail, fast food and restaurants, clubs and pharmaceuticals.
If you are not already up to speed with these reductions, we have outlined what you need to know about the penalty rate changes in our previous article following the FWC decision.