PROESSOR
Penalty Rates
Penalty rates refer to the compensation paid to employees for working unsociable hours in the Australian employment sector (Craig and Brown 2015). Penalty rates have been adopted in the Australian service industry for over a century, as they have been considered instrumental in promoting the Australian way of life and business growth through opening the shops on weekends. The adoption of penalty rates in the Australian service sector has been considered instrumental in influencing the business operations on Sundays, which has developed into a peak day of activities (Knox 2009).
The study seeks to integrate an analysis of penalty rates in Australia through a review of the impact of penalty rates to both employees and employers in the market. The review will analyze the viability of the Productivity Commission’s report that promotes the reduction of the penalty rates for the service industry provided on Sundays to remain in line with the rates provided for Saturday. The review will provide an informed analysis on penalty rates and influence on the existent business processes and growth in the Australian context.
Employee Perspective on Penalty Rates
Employees consider penalty rates as vital compensation that supplements the received monthly income through the provision of additional income. The majority of employees in the Australian service industry maintain that the industry requires the involvement of long working hours, which delimit one’s capacity for work-life balance (Craig and Brown 2011). The provision of working conditions that maintain work-life balance remain crucial in influencing the level of employee’s productivity and engagement in the work environment. The provision of favorable work-life balance structures ensure that employees develop the capacity to remain actively engaged in work processes (Markey 2015).
The provision of penalty rates is considered vital in the compensation for the lack of work-life balance among employees in the service sector. The provision of higher penalty rates for Sunday is considered vital as employees are denied the opportunity to be with family and friends. Therefore, the provision of high penalty rates compensates for the lack of one free day. Penalty rates are considered vital to the employees as they provide an incentive to working on weekends especially Sundays. Increased economic standards have necessitated the provision of supplemental income considered vital to the Australian population in ensuring that the received income meets the rising economic demands (Woodman 2014). The majority of employees maintain that penalty rates remain crucial in supplementing the monthly income in a positive manner that influences the economic viability of the occupation and sustenance of the individual.
Increased employee engagement remains crucial for any business as it ensures that the business has an engaged and dedicated workforce that seeks to adopt operational processes and methods geared towards ensuring operational efficiency and effectiveness. The provision of penalty rates remains crucial to employees in the Australian service sector as it influences the growth of an engaged workforce through the provision of favorable compensation for work done during unsociable hours (Woodman 2014). The provision of penalty rates influences the level of employee engagement, which remains crucial in influencing operational efficiency and effectiveness. Increased operational efficiency remains crucial to the business as it leads to reduced operational costs and consequent higher revenues. Therefore, the provision of penalty rates remains crucial to the business as it influences the growth of an engaged workforce that remains crucial in promoting operational efficiency (Markey 2015).
Employer Perspective on Penalty Rates
The penalty rates provide an additional cost to employers as the employers are required to incorporate additional payments on top of the monthly payments provided to employees (Sheldon and Thornwaite 2015). The majority of employers maintain that the penalty rates have developed into a detrimental element that delimits overall growth of the business. In the service industry, Sundays identify one of the busiest days of the week as the majority of the population identifies Sunday as their rest and non-working day. Therefore, opening the businesses on Sunday remains crucial in influencing the identification of additional revenue for the business. However, the majority of employers maintain that the bulk of the revenues generated on Sundays are provided to the high penalty rates imposed on Sunday, which delimits the viability of the working day and hours (Jackson 2015). The majority of employers remain in support of the Productivity Commission recommendations that promote the adoption of equal penalty rates for both Saturday and Sunday as they would influence the reduction in the penalty rates and increase the revenue generated by the business. The adoption of the commission’s policy would remain crucial to business continuity and growth (Productivity Commission 2015).
Employers acknowledge the impact of penalty rates on employee engagement and consequent work productivity. However, the majority of employers argue that the provision of high penalty rates will ultimately lead to the demise of the business attributed to the incurrence of high losses. Therefore, the adoption of the commission’s recommendations would remain crucial in meeting the needs of the business (Knox 2009). Additionally, the developed recommendations influence the adoption of a working structure between the employer and unions that maintains high levels of equality and remain focused on controlling business growth and efficiency through the provision of flexible operational processes. The adoption of flexibility within the organizational context remains crucial to both the business and employees as high rates of flexibility may influence the adoption of effective business practices that remain critical in ensuring employee engagement and efficiency and consequent business growth.
Conclusion
Penalty rates remain vital to both staff and employers in the Australian work environment. Employees maintain that the provision of penalty rates provide a welcome supplement to the provided income, which remains critical in meeting the rising living standards within the Australian economy. Additionally, employees maintain that the provision of penalty rates provides a viable compensation for work-life balance, which is denied upon working on Saturdays and Sundays. Employees are that the reduction of the punishment rates offered on Sunday would remain detrimental to their economic capacity attributed to lack of the necessary funds vital in meeting the basic needs and rising costs of living.
The employer maintains that the provision of the high penalty rates on Sunday provide an additional cost to the business, which remains detrimental to overall business growth and development. Employers argue that the implementation of the commission’s recommendations would remain instrumental in facilitating an increase in business revenue through reduced expenses attributed to penalty rates. Employers contend that the provision of equal penalty rates for the weekend will enhance the level of business stability, which will remain crucial in influencing overall business growth and development.
The analysis provides a review of the penalty rates from the employers and employees perspective. The commission should consider the rising costs of living and the need for the existence of supplemental income for employees within the population. Therefore, the development of a favorable compromise between the employees, employers, unions and the commissions would remain instrumental in the adoption of a model that meets the needs of all parties involved in a favorable manner thus influencing mutual consent and the viability of the operational processes adopted within the business. The adoption of a favorable compromise remains crucial in influencing the level of employee engagement, which remains crucial in influencing the level of operational efficiency experienced within the industry.
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