The Fair Work Commission has handed down a key decision phasing out junior rates for employees aged 18 to 20 affecting the retail, fast food, and pharmacy industries.
Current junior rates
Currently the General Retail Industry Award 2020, Fast Food Industry Award 2020 and Pharmacy Industry Award 2020 provide for the following junior rates:
Age % of adult rate
Under 16 40-45%
16 years 50%
17 years 60%
18 years 70%
19 years 80%
20 years 90%
The Decision
The Fair Work Commission accepted union submissions that junior rates for employees aged 18 to 20 are no longer justified because their work performance is substantially similar to that of employees over 21, with no productivity difference between the two groups.
However a reduced rate should apply to employees aged 18 to 20 during the first six months of their role while they are still undergoing training.
When the changes apply
The changes are expected to be phased in gradually from 1 December 2026. More information about the changes and when they take effect is available here.
Employers should also be aware of upcoming changes to minimum award rates and the minimum wage, explained at the “National minimum wages changes explained” article.
At WorkLegal our experienced team can answer your questions and put you on the right track. A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.