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Australia’s national employment tribunal, the Fair Work Commission (FWC), has ruled that 20 year old ‘junior’ employees covered by the General Retail Industry Award 2010 should receive the full adult wage rate.

This decision, which will shortly result in formal amendments being made to the Award, has important implications for all retail employers:

– Ultimately, 20 year old workers will no longer be classified as ‘juniors’ under the Award.

– To qualify for the full adult-rate of pay, a 20 year old will firstly need to complete 6 months’ continuous service in your business. During that time, they will continue to receive the current ‘90% junior’ rate of pay

– The transition to the new, full adult rate of pay for 20 year old workers will be phased-in gradually. From 1 July this year, 20 year olds who have completed 6 months’ service will become entitled to 95% of the equivalent adult rate. They will then become entitled to 100% of the adult rate from 1 July 2015

Don’t forget that all minimum Award wages will be increased on 1 July this year. We therefore recommend you wait until the annual increase is announced in June before preparing your new wage calculations.

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