Australians who work on state-based public holidays, such as Melbourne Cup Day, should be paid lower penalty rates than those applied to national holidays, hoteliers argue.
The Australian Hotels Association is calling for a two-tiered system, complaining there is an excessive number of holidays in some states and territories.
National public holidays such as Australia Day, Good Friday and Christmas should be paid at higher penalty rate, it says in its submission to the Fair Work Commission review of the hospitality award.
However, business should pay less for state holidays, such as AFL Grand Final Eve and Melbourne Cup day in Victoria, and the day off for the Royal Queensland Show.
The AHA says public holidays vary from state to state, and year to year, creating uncertainty for business.
"State governments often add public holidays, but never subtract one in return," its submission says.
"Business bears the cost when excessive numbers of dates are sanctioned."
Greens workplace spokesman Adam Bandt said a two-tiered system amounted to a pay cut for those who had to work public holidays.
"A grand final eve public holiday should prove a boon for Melbourne's hotels, and staff who work on that day are entitled to be paid properly," he said in a statement.
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