Hottest Hospitality Question this week?

Friday 21 August, 2015

 

Not to put a downer on the end of the week, but it’s a hot topic that is bound to affect a lot of hospitality businesses this very weekend – Sunday penalty rates! Increased pay on a Sunday is great news for employees, but equally could mean fewer shifts for people if hospitality businesses are forced to close to cater for penalty rates.

It’s an issue that (forgive the pun) is penalising hospitality businesses and threatening whether they stay open on a Sunday or not, as confirmed by Assistant Treasurer Josh Frydenberg on Monday’s ABC Q&A.

And for some cafes and restaurants penalty rates could reach 200%! How high the penalty rate is depends on factors such as the occupation grade of the employee, and whether they are employed on a casual or permanent basis. 

At the moment there is little evidence to show the direct effects penalty rates are having on hospitality businesses, and experts have contradicting beliefs about whether these will hinder or help these businesses. 

The discussion still stands: could the savings from lower penalty rates offer businesses the choice to employ more workers at the same costs, or the same number of workers at lower costs?

What do you think?

Almost 90,000 candidates have joined OneShift and 8,500 hospitality companies, and we would love to hear your thoughts on the penalty rates discussion….

 

Heather Doherty

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