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Sunday Penalty Rate Could Be Scrapped, Saturday Pay Instead

Hospitality and retail workers should be subject to one weekend penalty rate, the Productivity Commission recommends.

This would see Sunday penalty rates in some industries in line with time-and-a-half paid on Saturdays, reducing overall pay. 

But Employment Minister Michaelia Cash, in releasing the commission's final report into Australia's workplace relations framework on Monday, insists any change would be up to the Fair Work Commission.

"Why would the government set penalty rates? It's like asking the government to set interest rates," she told reporters in Perth.

Labor's workplace spokesman Brendan O'Connor said the proposed change to hospitality and retail penalty rates would significantly impact household budgets and should be rejected immediately.

"This report is Malcolm Turnbull's gift that no worker wants for Christmas," he told reporters in Melbourne.

Despite Senator Cash's claim it was an independent report, Mr O'Connor said it was commissioned by the government, which directed how it should be conducted.

AAP

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