Penalty rates hearing to be held on budget day

Federal parliament will return for the budget on the same day as the Fair Work Commission seeks advice on the penalty rate cut rollout.

(File Image) A barista prepares a coffee at a Canberra cafe. The cuts to penalty rates apply primarily to the retail and hospitality industries. Source: AAP

The Fair Work Commission has listed its full bench hearing on penalty rates for May 9, the same day as the federal budget is handed down.

The Melbourne hearing has been scheduled to discuss the transitional arrangements to apply to the reduction in Sunday penalty rates in the retail, hospitality and pharmacy sectors.

The Turnbull government has argued it is up to the commission to decide on how best to implement the decision, but Labor and unions say the umpire should scrap the idea.