Penalty rate changes good for jobs: ACCI

A key business group believes changes to penalty rates proposed by the Productivity Commission will increase employment opportunities.

The commission, in a draft report into the workplace relations framework released on Tuesday, recommends Sunday penalty rates in the hospitality, entertainment, retail, restaurants and cafe sectors be reduced to Saturday rates.

However, Australian Chamber of Commerce and Industry chief Kate Carnell is disappointed the report does not fully address employer concerns over unfair dismissal laws, and will continue to advocate for change.

Australian Industry Group boss Innes Willox said the report's recommendations need to be carefully considered and debated.

He said the present system is not delivering the adaptability that employers and employees need.

"It is essential that the federal government, the opposition and all other parties not rule anything in or out at this early stage," Mr Willox said in a statement.