Loaded Hourly Wage To Negate Penalty Rates?

The Fair Work Commission has said it will look at offering employers the choice to pay workers a higher hourly rate that then negates the need for penalty rates and overtime.

While not something that will come into play immediately, it is something the Commission will look at in the future as an option.

This could be a potential solution for many small businesses who struggle to operate on public holidays because of additional costs related to penalty rates, such as during the Grand Final public holiday. It could mean that they can open more often, providing more work days and jobs. However, it does mean an overall increase in their staffing costs, which would then need to be made the most of over weekends and public holidays.

We also need to consider the workers and ensure that this is the best solution for them. Is it fair for those who always work weekends and public holidays because their colleagues are unable to for whatever reason? Is it fair to require all staff to work a certain number of public holidays or weekends, even if it is a difficulty for some workers with families or other commitments? What about those people who need to take as many shifts as possible to earn more money – does it ultimately work out better or worse for them?

There are many factors to consider with this, for employers, employees, and how it will affect both small and large businesses. What do you think of this proposed change?