The Federal Court of Australia has upheld the Fair Work Commission's (FWC's) decision to cut penalty rates today, dismissing all union appeals.
The ruling follows a three-day appeal hearing, which took place late last month.
Federal Court judge Mordy Bromberg said the court was unable to overturn the FWC's decision, as it was restricted to determining administrative errors only.
"The FWC alone was vested with the responsibility for assessing all relevant matters and reaching all of the conclusions necessary to decide whether or not to make the determinations.
"The Court’s task is confined to the ascertainment or not of jurisdictional error. This does not entail reviewing the correctness of the FWC’s conclusions."
The National Retail Association (NRA) CEO Dominique Lamb has welcomed the Federal Court's decision in a statement earlier today.
“Given the reductions were offset by an increase to the minimum wage in June this year, but the reductions were then slated to be phased in over four years, there’s really been no relief for retailers.
“We need to stop preventing retailers from adapting to a rapidly-changing environment, and work out how we, as a nation, can instead enable and foster growth for one of the most valuable contributors to the Australian economy."
The NRA represented several retailers during the hearings and has praised the Court for rejecting all of the unions' grievances with the decision of the Fair Work Commission.
The Australian Small Business and Family Enterprise Ombudsman also welcomed the Federal Court’s judgment.
Obudsman Kate Carnell said the decision would greatly benefit small businesses throughout Australia.
“Small business operators will be relieved at this decision, which levels the playing field in competition against big business.
“Big business and unions have made deals in the past through enterprise agreements which traded penalty rates for union membership and higher base rates.
“Small businesses don’t have the capacity to negotiate enterprise agreements and continue to grapple with the most complex award system in the world."