On 31 March 2026, the Fair Work Commission published its decision in response to an application that was brought by the Shop, Distributive and Allied Employees’ Association (SDA) to vary certain minimum wages for junior employees under the following awards:
- General Retail Industry Award 2020
- Fast Food Industry Award 2020
- Pharmacy Industry Award 2020
Its decision will effectively abolish the existing rates payable to adult junior employees and will set them at a rate of 100% of the full adult minimum wage in respect to the relevant classification of each award.
The Full Bench’s provisional timetable for implementation of its decision is as follows:
These changes will not affect junior rates applicable for persons under the age of 18, or for periods aged 18 to 20 who do not have more than 6 months’ experience (assessed by reference only to the period of employment with their current employer).
In making its determination, the Commission took into consideration the history of junior rates, fairness to junior employees and their employers, and the ‘work value’ of the relevant work.
What employers need to do
In order to prepare for these changes, employers must take the following measures:
- Determine if any of the affected awards apply to their business;
- Determine if they current employ young adult junior employees (ie. employees between the age of 18 – 20 whom have been employed by the business for more than 6 months);
- Keep informed about the finalisation of the phasing process for the new increases;
- Review the affected employees’ classifications and pay rates, and make preparations for the rates to meet the relevant increase by 1 December 2026; and
- Periodically review affected employees’ classifications and pay rates and ensure that it is keeping up with future rate increases.
Need Help?
If these changes raise concerns or you need a second opinion, our team at Australian Business Lawyers & Advisors are ready to assist. For further guidance or to discuss your specific circumstances, please get in touch.
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