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Retailers are planning to have Sunday penalty rate cuts completed over the next 15 months.

Retailers are seeking to have the cuts to Sunday penalty rates completed in the minimum length of time as recommended by the Fair Work Commission.

The Australian Retailers Association (ARA) has already informed members it intends to support submissions to have Sunday rates cut in a two-stage transition process.

Sunday rates of 200% will be reduced to 175% by July 1, 2017 and 150% by July 1, 2018.

ARA executive director Russell Zimmerman said retail employees will experience very little negative impact should a two-stage process come into effect.

"Based on the evidence presented to the commission during this industry-wide case, employees in the industry would experience no, or very marginal, negative impact, if the penalty rate reduction was transitioned in this two-stage process."

Zimmerman also said that the changes will also allow for the industry to create further jobs, as well as offer additional working hours.

“Implementing a two-stage transitional pay arrangement for the reduction in Sunday penalty rates will allow retailers to roster additional staff on a Sunday, and give more employment opportunities to young workers seeking both extra hours and new employment over the weekend.

“With 725,000 people out of work, including 259,000 young people, the ARA believes the reduced penalty rates will make it easier for employers to hire staff.”

However, casual employees under this plan would see their full pay cut within months, from 200% to 175% by July 1.

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