Employment lawyer reveals the 'unintended' impact of junior pay rate restructuring
Employers across all industries are being urged to brace for sweeping changes to junior pay, with experts warning that recent award reforms in retail, fast food and pharmacy are likely to set a precedent for the broader workforce.
The Fair Work Commission’s provisional decision in March will overhaul junior pay structures in the General Retail Industry, Fast Food Industry, and Pharmacy Industry Awards. Under the four‑year phase‑in, junior employees will move much more quickly to adult rates of pay, with adult junior employees reaching 100% of the full adult rate after six months of experience.
From December, employees aged 18 covered by the three awards will receive 75% of the full adult rate, 19‑year‑olds will receive 85%, and 20‑year‑olds 95%. These rates will then rise by five percentage points every six months until the full adult rate is reached.
Employment lawyer Jordan Hardinge of Herbert Smith Freehills Kramer said that while the immediate impact is confined to retail, fast food and pharmacy, the decision has clear flow‑on implications for employers in other sectors.
Once operative, the higher junior rates under the modern awards will become the base rate of pay for the purposes of section 206 of the Fair Work Act 2009 (Cth). This will require employers with enterprise agreements across all industries to regularly check that EA rates remain above the relevant award rates – not just...
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