Costly penalty rates are forcing up to one third of retail businesses to close their doors on public holidays and employers are being forced to deny workers requesting shorter shifts, according to an industry survey.

The survey was conducted by the National Retail Association (NRA), with support from the Australian Chamber of Commerce and Industry.

It found that 45 per cent of businesses pay above award rates and 90 per cent have a staff discount plan in place, however, 30 per cent of businesses reported that they were forced to close their doors when customers were out shopping on public holidays because they simply could not afford to pay the required rates.

NRA CEO, Trevor Evans, said the results showed the need for urgent reform of the modern retail award.

“We saw recently on the Easter long weekend that thousands of retail businesses, from clothing shops to cafes, closed their doors to potential shoppers because of the cost of labour.

“It’s simply naïve to argue that the workers involved needed the penalty rates to make ends meet, when they are simply missing out. Rather than being able to work and earn money, they instead achieved double time of nothing.”

The survey also showed that 30 per cent of businesses had received requests from employees wanting to work less than the minimum three-hour shift. But once again, employers who could offer shorter shifts to those who wanted them were being denied the opportunity to do so.

 Evans said there was no good reason for the law to dictate how long employees could work, particularly in an industry where casual work is common.

“There is simply no good reason for the government to dictate to workers and employers how long casual workers should be forced to work,” Evans said.

“Again, it is nonsensical to argue that workers will be worse off if the three-hour minimum was removed, when there are clearly jobs going begging because of that limit.

“If an employer is able to offer two hours’ work each afternoon and a university student it willing to take it, why should the law prevent them from reaching an agreement?

“These results underline the need for urgent reform of the Fair Work Act, which should be helping to generate employment but in reality is acting as a brake on jobs and prosperity in this nation.”

The full survey results are available at www.nra.net.au.