The NSW Business Chamber ramped up its campaign for the federal government to change penalty rates legislation for the retail and hospitality industries late last month in the lead-up to the Easter long weekend.

In Maitland, Art Depot Cafe and Gallery owner Peter Cooper said he and co-owner Robyn Reid decided not to open during the Easter period because of the cost of paying staff penalty rates.

Mr Cooper said they thought they would not make enough money during the long weekend to compensate for the cost of paying employees the required higher rate for working on public holidays.

Good Friday, Easter Saturday, Easter Sunday and Easter Monday are classified as public holidays in NSW, according to Fair Work Australia.

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The most recent retail sales and hospitality award notes that an employee can be entitled to as much as 250 per cent of their regular hourly rate on a public holiday.

Mr Cooper said if a public holiday fell during a traditionally busy time in Maitland, the cafe would open.

“We’ve got to actually cover our rent and overheads,” he said.

“We had to make a decision one way or the other and that decision could have been to our detriment.” 

Ms Reid said changes to penalty rates could make it less risky for small businesses to open on public holidays.

Maitland Business Chamber president Craig McGregor said small business was the largest employer in the city.

He said any resolution to the debate about penalty rates needed to balance the needs of customers, employers and employees.

Many customers wanted to shop or eat out on public holidays, Mr McGregor said, but employers needed an affordable way to staff their business on these days and some employees would want to spend public holidays away from work, with family and friends.

“There needs to be a change,” he said.

“Labour is the highest cost for small businesses and it often makes a difference to whether they stay open [on public holidays] and consumers, employers and employees all lose.

“It needs to be reviewed so there is a middle ground for all parties.”

According to the most recent award in the retail sales and hospitality industries, employees are entitled to 250 per cent of their regular hourly rate on the following public holidays in NSW when they fall on week days:

Slightly lower rates apply when certain public holidays fall on the weekend, depending on the public holiday.