If you are an employer and your business operates on a weekend, it is essential that you consider the penalty rates for weekend staff. Continue reading this Legal Kitz blog to learn more about Sunday penalty rates.
What is weekend Sunday pay?
Employees who work on weekends are eligible for higher pay rates, also known as weekend penalty rates. These rates are intended to provide compensation for work done outside of typical weekday hours. While not all workplace agreements or Modern Awards mandate higher pay rates for weekend work, most require employers to pay a minimum of 150% (time and a half) of the regular base wage for work completed on a Saturday, and 200% (double time) for work done on a Sunday.
The idea behind Sunday pay is to compensate workers for the inconvenience of working on a day that is traditionally considered a day of rest and relaxation.
Let’s say you are a hospitality worker covered by the Hospitality Industry (General) Award 2020. Your ordinary hourly rate of pay is $25.00 per hour. According to the Award, you are entitled to receive a Sunday penalty rate of 150% for the first two hours worked and then 200% for any additional hours worked on Sundays. If you work an eight-hour shift on a Sunday, you would be entitled to the following pay:
- 2 hours at time and a half (150%): $37.50 x 2 = $75.00
- 6 hours at double time (200%): $50.00 x 6 = $300.00
Who is entitled to Sunday pay?
In Australia, the types of employees who are entitled to Sunday penalty rates are generally outlined in workplace agreements, Modern Awards, or employment contracts.
In most cases, employees who work on Sundays are entitled to receive penalty rates, however, the specific entitlements can vary depending on the industry and the nature of the work being performed.
Some industries in Australia where Sunday penalty rates are typically paid include hospitality, retail, and healthcare. For example, employees working in cafes, restaurants, bars, and hotels are often entitled to receive penalty rates for work performed on Sundays. Similarly, workers in retail stores and shopping centers may also be eligible for higher rates of pay on Sundays.
In addition to these industries, other sectors where Sunday penalty rates may apply include security, transport, and emergency services. However, the entitlements for these employees may be determined by different agreements or regulations.
It’s important to note that employees who are covered by a workplace agreement or Modern Award will typically have their entitlements clearly outlined in these documents. Similarly, those who are employed under an individual employment contract should review their contract to determine their entitlements to Sunday penalty rates.
Where to find information regarding Sunday penalty rates
You can find information about your Sunday penalty rates in a number of places, depending on your employment situation.
If you are covered by a Modern Award or an Enterprise Agreement, you can refer to the relevant document to determine your entitlements. These documents will outline the minimum rates of pay for different classifications of employees, including any penalty rates that apply for work performed on Sundays.
If you are not covered by a Modern Award or Enterprise Agreement, you can check your employment contract or agreement with your employer to determine your entitlements to Sunday penalty rates.
In addition to these sources of information, the Fair Work Ombudsman website provides information on minimum pay rates, penalty rates, and other entitlements for employees in Australia. The website also includes tools such as pay calculators and award finders that can help you determine your entitlements based on your job and industry.
Legal advice
Knowing your penalty rates rights is important because it ensures that you are being paid fairly and can help you make informed decisions about your work and career. It can also protect you from being underpaid or exploited by employers.
If you need any assistance on Sunday pay, or penalty rates, you can always contact Legal Kitz to assist you. To arrange a FREE 30-minute consultation with one of our highly experienced solicitors, contact us at [email protected] or 1300 988 954. Additionally, you can also check out our sister company – Business Kitz’s Subscriptions, to access our full range of legal, commercial and employment document templates to begin your business with a solid foundation that ensures compliance.