Industry opposes Christmas penalty rates


THE Australian Industry Group has applied to cancel Christmas and New Year's Day penalty rates for workers, arguing companies shouldn't have to pay staff extra - despite the NSW government declaring them public holidays.

The employer group has argued to the Fair Work tribunal that penalty rates should only be paid to staff working the substitute holidays - the following Monday and Tuesday - as Christmas, Boxing Day and New Year's Day fall on a weekend.

But the government yesterday defended its right to decide which days were public holidays, and said workers should be paid accordingly.
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''Any attempt to attack penalty rates will tilt the balance too far in favour of corporations and big business and away from working families,'' the NSW Minister for Industrial Relations, Paul Lynch, told the Herald.

It is the first time employers have dealt with the Christmas season under the federal government's full Fair Work system.

The AI Group case focuses on manufacturing workers, but its chief executive, Heather Ridout, said: ''The tribunal's decision will impact on many industries which operate over the holiday period''.

The National Employment Standards in the Fair Work Act apply to all workers and includes public holiday remuneration. But the AI Group contends federal workplace awards don't recognise state gazettal of public holidays.

Mr Lynch said: ''Under the Fair Work Act, the states retain the power to make laws declaring which days are public holidays in its jurisdiction.''

Ms Ridout said each state had different public holiday arrangements and it was causing ''potentially costly confusion'' for employers.

You have missed the point.

Because both Xmas and New Years Days are both Saturdays, we employers not only have to pay them for the public holiday for those days, even if they dont work them, but then we have to back up and pay them another public holiday on the following Tuesdays.

Employers have been slugged with the cost of two extra public holidays because of it.

Because our business runs 7 days a weeks under the award we still have to pay them.

I dont have a problem paying people penality rates.  I have a problem when the government makes us pay EXTRA because one of them falls on a Saturday so to give office workers an extra day off, they make 7 day a week businesses pick up the tab.

Now where is the fairness in that.

Anyone who has to work on the genuine Holiday day should be properly paid by Mr Scrooge.

If the employer does not want to pay penalties for someone to work on xmas day it is simple just do not roster them to work that day.

I have worked a number of xmas days in the past without being properly paid the correct penalty rates while people who did not work the PH were paid the rates. It is blatently unfair that way too.

Both DNA and Nem have missed the point.

We dont mind paying public holiday rates.

If we want our staff to work christmas day, which they do, we dont have a problem paying them.

But this year, not only do we have to pay them for Xmas day on the Saturday, we also have to pay them for Boxing Day on the Monday (which is also fine), but an EXTRA ONE on the Tuesday as well.

And then we cop the same with New Years.  We have to pay the public holiday rate for the Saturday (which is fine, no problems there) but then we cop AN EXTRA DAY where we have to pay it for Monday the 3 Jan.

The old way used to be if it fell on a weekend, it got moved to the nearest weekday.  This time around they kept it, and granted another two.

The governments decision is going to cost us $20k in two weeks, and we have to just take it on the chin.

Who is the one being draconian Nem?

I dont have a problem paying public holidays, and nether does others, but when we cop two extras it damn well bloody hurts.

Equitist wrote on Nov 9^th, 2010 at 12:51pm:


Is the turnover really relevant Equitist???
Some shops won't even make 20k in those 2 weeks, which means a net loss....Especially considering the predictions of reduced spending THIS year, due to financial pressures from mortgage rates, rising power bills and financial downturns.....

Fair enough!

I think that we need to keep in mind that the pre-Xmas, Xmas and school holiday window is highly profitable for many businesses - especially when those profits are averaged over that period...

Many businesses close down for much longer than the Xmas period (well into January), because it is too quiet to warrant staying open...

Those businesses which do stay open, always weigh up various factors before they make the choice to do so - as they are not obligated to trade...

Therefore, IM(not-so)HO, the AIG is making unnecessary enemies by raising this test case...

Equitist wrote on Nov 9^th, 2010 at 1:11pm:


Yes, but you need to realise that in some industries, the business has to pay penalty rates to all non-casual staff, even if the business doesn't open on that particular day, and even if the employee doesn't normally work weekends ( because Xmas day and NYS day are on saturdays)...So adding an extra public holiday will cost some businesses a considerable amount in extra penalty rates...

Equitist wrote on Nov 9^th, 2010 at 12:51pm:


Our turnover is irrelvant to the discussion, because we wont generate any additional revenue compared to previous years when we have had to only pay for three public holidays, compared to the five of this year.

Even if we shut, we still have to pay it because thats the way the award is.

So thanks to small minded people like yourself who dont care, we are up for $20k.

They moved ANZAC day this year and didnt make us pay for it twice, so why are they making us pay for it twice with Xmas and New Year?

How happy would you be if you had to pay 100 people two extra days pay within a week even if they dont work?