2013-2014-2015 

 

The Parliament of the 

Commonwealth of Australia 

 

THE SENATE 

 

 

 

 

Presented and read a first time 

 

 

 

 

Fair Work Amendment (Penalty Rates 

Exemption for Small Businesses) Bill 

2015 

 

No.      , 2015 

 

(Senators Leyonhjelm and Day) 

 

 

 

A Bill for an Act to amend the Fair Work Act 2009, 

and for related purposes 

   

   

 

 

No.      , 2015 

Fair Work Amendment (Penalty Rates Exemption for Small Businesses) 

Bill 2015 

i 

 

Contents 

1 

Short title ........................................................................................... 1

 

2 

Commencement ................................................................................. 1

 

3 

Schedules ........................................................................................... 1

 

Schedule 1--Amendments

 

2

 

Fair Work Act 2009

 

2

 

 

 

 

 

No.      , 2015 

Fair Work Amendment (Penalty Rates Exemption for Small Businesses) 

Bill 2015 

1 

 

A Bill for an Act to amend the Fair Work Act 2009, 

1 

and for related purposes 

2 

The Parliament of Australia enacts: 

3 

1  Short title 

4 

 

  This Act may be cited as the Fair Work Amendment (Penalty Rates 

5 

Exemption for Small Businesses) Act 2015. 

6 

2  Commencement 

7 

 

  This Act commences 12 months after the day on which this Act 

8 

receives the Royal Assent. 

9 

3  Schedules 

10 

 

  Legislation that is specified in a Schedule to this Act is amended or 

11 

repealed as set out in the applicable items in the Schedule 

12 

concerned, and any other item in a Schedule to this Act has effect 

13 

according to its terms. 

14 

Schedule 1  Amendments 

   

 

 

2 

Fair Work Amendment (Penalty Rates Exemption for Small Businesses) 

Bill 2015 

No.      , 2015 

 

Schedule 1

--Amendments 

1 

   

2 

Fair Work Act 2009 

3 

1  Section 12 

4 

Insert: 

5 

excluded small business employer: see section 23AA. 

6 

2  Subsection 23(1) 

7 

Omit "15 employees", substitute "20 employees". 

8 

3  After section 23 

9 

Insert: 

10 

23AA  Meaning of excluded small business employer 

11 

 

(1)  A small business employer is an excluded small business 

12 

employer at a particular time if the employer employs fewer than 

13 

20 employees at that time in any of the following industries: 

14 

 

(a)  restaurant and catering; 

15 

 

(b)  hospitality; 

16 

 

(c)  retail. 

17 

 

(2)  For the purpose of calculating the number of employees employed 

18 

by the employer at a particular time: 

19 

 

(a)  subject to paragraph (b), all employees employed by the 

20 

employer at that time are to be counted; and 

21 

 

(b)  a casual employee is not to be counted unless, at that time, he 

22 

or she has been employed by the employer on a regular and 

23 

systematic basis. 

24 

 

(3)  For the purpose of calculating the number of employees employed 

25 

by the employer at a particular time, associated entities are taken to 

26 

be one entity. 

27 

4  Paragraph 139(1)(e) 

28 

Before "penalty rates", insert "subject to section 155A,". 

29 

Amendments  Schedule 1 

   

 

 

No.      , 2015 

Fair Work Amendment (Penalty Rates Exemption for Small Businesses) 

Bill 2015 

3 

 

5  At the end of Division 3 of Part 2-3 

1 

Add: 

2 

155A  Terms dealing with penalty rates payable by excluded small 

3 

business employers 

4 

 

  A modern award must not include a term that has the effect of 

5 

requiring an excluded small business employer to pay penalty rates 

6 

to an employee for work performed for the employer, unless: 

7 

 

(a)  the work: 

8 

 

(i)  is performed on a weekend; and 

9 

 

(ii)  is in addition to 38 hours of work that the employee has 

10 

worked in the relevant week; or 

11 

 

(b)  the work: 

12 

 

(i)  is in a 24 hour period; and 

13 

 

(ii)  is in addition to 10 hours of work that the employee has 

14 

worked in that period; or 

15 

 

(c)  the work is performed on a public holiday. 

16 

6  At the end of Schedule 1 

17 

Add: 

18 

Part 3--Amendments made by the Fair Work 

19 

Amendment (Penalty Rates Exemption for 

20 

Small Businesses) Act 2015 

21 

   

22 

13  Definitions 

23 

 

  In this Part: 

24 

amended Act means this Act as amended by the Fair Work 

25 

Amendment (Penalty Rates Exemption for Small Businesses) Act 

26 

2015. 

27 

commencement means the commencement of this Part. 

28 

Schedule 1  Amendments 

   

 

 

4 

Fair Work Amendment (Penalty Rates Exemption for Small Businesses) 

Bill 2015 

No.      , 2015 

 

14  Application of section 155A of amended Act 

1 

 

  Section 155A of the amended Act applies in relation to a modern 

2 

award that is in operation on or after commencement, whether or 

3 

not the award was made before commencement. 

4