Retail workers would be able to work a more flexible four-day week and finish shifts early under a proposal to update the General Retail Industry Award (GRIA). Retail managers would also be able to choose an annual salary at a higher fixed rate over variable, hourly penalty rates.
These proposals are included in the Australian Retailers Association (ARA) application to clarify, simplify and modernise the GRIA to be heard by the Fair Work Commission (FWC) next month.
Under ARA proposals, workers who would like to work a four-day week have the option to more flexibly work 38 hours across four days, while allowing split-shifts. This would provide working parents with greater flexibility for activities such as school pickup and drop off. Workers that want to finish early can choose to take their break at the end of their shift.
There is a working precedent for the penalty rate proposal, which is already used broadly and effectively across a range of industries.
"This choice and flexibility aligns with the shift towards more flexible ways of working which is in the best interests of workers and their employers," Ms Brown said.
"Our proposal addresses areas where the GRIA is out of step with the needs of a modern retail workforce and where there are obvious, counter-productive barriers to mutually agreed flexible work arrangements.
"It's widely accepted that the GRIA is unnecessarily complex. There's almost 1000 individual pay rates. The complexity and onerous detail puts an enormous burden on small to medium businesses in particular who simply want to focus on fairly rewarding their team, doing the right thing by their customers and being part of the retail sector which is a crucial element of the Australian economy.
"We respect the Fair Work Commission process and we look forward to next month's hearing. However, given the misinformation campaign that has been waged by unions in recent weeks around penalty rates, it's important to correct the record.
"There is no proposal to remove penalty rates, overtime or paid breaks from the award. What the ARA has proposed is that managers can opt into a pay increase if they select the voluntary salary absorption option. This will only apply to employees that agree to it.
"Similarly, our proposal has never suggested removing breaks from the award. We are simply proposing that any employees who prefer to take an early mark can opt into that."
A full fact sheet is available here.
More than half of retail businesses surveyed by the ARA say current workplace relations laws create barriers to employment outcomes, such as the ability to work 38 hours over four days or to work split shifts to accommodate their personal needs of employees.
Hypothetical example of how the proposed changes could apply to a worker:
Present state – Jenny works full-time at level six. Over a six-month period she works an average of two hours of overtime per week.
Jenny's current FT weekly wage inc. overtime under existing GRIA: $1176.37
Jenny's new FT weekly wage under salary absorption rate proposal: $1362.88
Financial benefit to Jenny $186.51 per week
Safeguards
- Change by employee agreement only
- Max of 43 hours per week covered by arrangement
- Min 16 days off per 8-week roster
- Public holidays in line with GRIA
- Additional compensation for public holidays worked
The ARA's 13 submission proposals for the GRIA:
There are 13 proposals in the ARA submission which will be heard in March 2025. These are listed below:
- Proposal A - Amendment to make clear that "written records" include digital records;
- Proposal B - Amendment to allow for split shifts with employee agreement;
- Proposal C - Amendment to minimum break between shifts on different days;
- Proposal D - Amendment to improve ability to average hours over longer periods;
- Proposal F - Amendment to remove restriction of 19 starts for full-time employees;
- Proposal G - Amendment to enable 38 ordinary hours to be worked across four days;
- Proposal H - Amendment to remove the requirement for consecutive days off by agreement;
- Proposal I - Amendment to clarify employees regularly working Sundays;
- Proposal J - Amendment to introduce salaries absorption for managerial and higher-level staff;
- Proposal L - Amendment to remove requirements to notify break times in advance for non-part-time employees;
- Proposal O - Amendment to clarify annual leave loading;
- Proposal P - Amendment to provide an ability for employees to waive a meal break and go home early; and
- Proposal Q - Amendment to clarify the application of the first aid allowance
The full submission can be accessed here.
