The Fair Work Commission has confirmed cuts in some Sunday penalty rates will begin from 1 July, to be phased in over three to four years, while cuts in public holiday rates will begin on 1 July.

Labor slammed the decision, saying it came at a time when wages were falling in real terms, but the Australian Retailers Association has called for the cuts to be brought in more swiftly.

The commission decided in February to cut Sunday and public holiday penalty rates by up to 50 percentage points in the retail, pharmacy, hospitality and fast food industries, arguing they no longer provided a “fair and relevant” minimum safety net.

On Monday it announced the way those cuts will be implemented. It said Sunday penalty rate cuts in the fast food and hospitality industries would be phased in over three years, and over four years in the retail and pharmacy industries.

The Labor leader, Bill Shorten, has called the decision “appalling”. “Today’s transitional arrangements decision by the Fair Work Commission has confirmed the worst fears of workers – penalty rates cuts on Sundays and public holidays will start on 1 July 2017,” he said.

“While Malcolm Turnbull has previously said he supports the FWC’s decision to cut penalty rates, workers can have their take-home pay protected if Mr Turnbull changes his mind and intervenes.

“The solution is simple – these cuts can be stopped if Malcolm Turnbull supports Labor’s legislation to do so,” he said.

Russell Zimmerman, the executive director of the Australian Retailers Association, has criticised the decision for the opposite reason.

He said retailers were expecting to ramp up employment via a quick transition to “more sustainable penalty rates” and they would be disappointed by the “excessive length” of the multi-year phase-in.

“The commission found that a reduction in penalty rates will allow retailers to extend staff working hours and increase employment across the board, therefore these sluggish arrangements will unnecessarily delay the creation of new retail jobs,” he said.

The Business Council of Australia has welcomed the transition plan, calling it a “sensible” decision.

“It is essential that penalty rates continue to be set independently by the Commission, free of political interference,” the BCA said in a statement. “It is important to remember that the commission’s decision adjusts rather than abolishes penalty rates. In all cases except fast food, workers still earn a higher rate on Sunday than on Saturday – up to 175%.”

The commission’s decision comes after considerable pressure from Labor and the Greens to lock in Sunday penalty rates.

The Greens have called for a floor below which the commission cannot cut rates, while Labor has said it does not support any cuts.

One Nation and the independent senator Jacqui Lambie have also called for bans to future cuts to penalty rates.

Adam Bandt, the Greens’ workplace relations spokesman, said the decision to phase-in penalty rate cuts was devastating for low-paid workers.

“With profits up a massive 40% this year but wages only 0.9%, it beggars belief that business says it can’t afford to pay penalty rates,” he said.

“A Greens/Labor bill to protect penalty rates passed the Senate in March. With the cuts just around the corner, the pressure on Malcolm Turnbull is mounting.”

The phase-in plan for penalty rates cuts:

FAST FOOD AWARD

Full-time and part-time employees (Level 1):

• From 150% to 145% on 1 July, 2017
  
• From 145% to 135% on 1 July, 2018
  
• From 135% to 125% on 1 July, 2019

Casual employees (Level 1):

• From 175% to 170% on 1 July, 2017
  
• From 170% to 160% on 1 July, 2018
  
• From 160% to 150% on July 1, 2019

HOSPITALITY AWARD

Full-time and part-time employees:

• From 175% to 170% on 1 July, 2017
  
• From 170% to 160% on 1 July, 2018
  
• From 160% to 150% on 1 July, 2019

RETAIL AWARD

Full-time and part-time employees:

• From 200% to 195% on 1 July, 2017
  
• From 195% to 180% on 1 July, 2018
  
• From 180% to 165% on 1 July, 2019
  
• From 165% to 150% on 1 July, 2020

Casual employees:

• From 200% to 195% from 1 July, 2017
  
• From 195% to 185% from 1 July, 2018
  
• From 185% to 175% from 1 July, 2019

PHARMACY AWARD

Full-time and part-time employees:

• From 200% to 195% on 1 July, 2017
  
• From 195% to 180% on 1 July, 2018
  
• From 180% to 165% on 1 July, 2019
  
• From 165% to 150% on 1 July, 2020
  

Casual employees:

• From 225% to 220% on 1 July, 2017
  
• From 220% to 205% on 1 July, 2018
  
• From 205% to 190% on 1 July, 2019
  
• From 190% to 175% on 1 July, 2020