On 6 June 2024, the Shop, Distributive and Allied Employees’ Association (SDA) applied to increase the rates of pay for junior employees aged 20 or under in following 3 Awards:
- General Retail Industry Award 2020
- Fast Food Industry Award 2020
- Pharmacy Industry Award 2020
The Full Bench of the Fair Work Commission considered how an increase in pay rates for junior employees would impact on employers, and the effects it would have on potential employment for minors and young adults. Reasonable conditions to increase pay rates for employment under these three Awards, work value and complying with the Fair Work Act’s Modern Award and minimum wages objectives all played a part in their decision.
Key changes to adult junior employee pay rates
Following the decision made by the Full Bench of the Fair Work Commission, changes to adult junior employee pay rates under the 3 Awards above are as follows:
- After 6 months’ experience with their current employer, the rates payable to adult junior employees will be set at a rate of 100% of the full adult rate of pay.
- The current pay rates will remain the same for adult junior employees with less than 6 months’ experience with their current employer.
- There will be no change to junior rates for employees under the age of 18.
Provisional view and implementation
The Full Bench Commission have released that the provisional view for these changes is due to start from 1 December 2026, with the final changes set to come into effect 1 July 2029. The Full Bench is due to hold further hearings regarding confirmation of final arrangements for these changes to allow employers to make necessary preparations. In consideration of this change, a four-year transition period will also mitigate potential impacts that an increase in rates for workers aged 18, 19 and 20 may have on employers and employment opportunities for adult junior employees.
Provisional timeline
| First pay period after: | General Retail Industry Award 2020, Fast Food Industry Award 2020, Pharmacy Industry Award 2020 | ||
| Age | 18 (and employed by the employer for more than 6 months) | 19 (and employed by the employer for more than 6 months) | 20 (and employed by the employer for more than 6 months) |
| Present rates | 70% | 80% | 90% |
| 1 December 2026 | 75% | 85% | 95% |
| 1 July 2027 | 80% | 90% | Full adult rate |
| 1 December 2027 | 85% | 95% | |
| 1 July 2028 | 90% | Full adult rate | |
| 1 December 2028 | 95% | ||
| 1 July 2029 | Full adult rate | ||
Directions
Directions are to be issued to provide parties with a further opportunity to be heard in relation to the implementation of the Full Bench’s decision.
For more information regarding how these changes might impact your business, contact HumanKapital via the link below.