Federal Court rules in favour of slashing penalty rates

The Federal Court has ruled in favour of the Fair Work Commission’s decision to slash Sunday Penalty rates.

The Unions have failed in their Federal Court bid to challenge the cut.

Unions representing hospitality and retail workers challenged the commission’s decision in June to reduce penalty rates for workers in fast food, hospitality and retail.


This morning, Justice Mordy Bromberg said the court found no jurisdictional error in the Fair Work Commission’s proposed changes.

The polarising decision has already sparked comment from Labor, who are vowing to protect penalty rates if elected.

The new rates and public holiday pay reductions were to come into effect on July 1 this year.

The ACTU has estimated nearly 500,000 people are affected by the changes and allege those workers will lose up to $6,000 a year.