On 25 November, the Fair Work Commission handed down its decision on junior rates in the General Retail Award 2020 as part of the Four Yearly Review.
The Fair Work Commission determined that juniors can only be classified at levels 1 to 3 and not at levels 4 to 8 as previously provided for.
The Shop, Distributive, Allied Employees (SDA) claimed that it was not appropriate to be applying junior rates to all classifications given that the majority of pre-modern awards didn’t provide for junior rates above level 1.
Australian Business Lawyers and Advisors were successful in defeating the SDA’s claim. The Fair Work Commission rejected SDA’s claim.
If an employee is trade qualified or classified at level four or above and is under 21 years of age they must now be paid the appropriate adult rate. The Fair Work Commission recognised that very few junior employees are engaged at levels four and above, therefore junior rates from and including level four and above will be removed.
These changes come into effect in line with the wage increase effective from the First Full Pay Period on or after 1 February 2021.
If you are unsure of how the change will impact your workplace/business or the employment arrangements, you have in place with the juniors covered by the General Retail Award 2020 and you are a the South Australian Business Chamber member please contact our Business Advice Hotline on (08) 83000000 (select option 1)
We recognise that more support is needed by businesses across Australia as a result of the Covid-19 pandemic. In partnership with them Fair Work Ombudsman, the South Australian Business Chamber is here to provide industrial relations advice to businesses covered by Commonwealth Workplace Laws.
If you are not a the South Australian Business Chamber member you can still access our free Industrial Relations Advice Line (08) 8300 0000 (select option 2) and Covid-19 Resources at The South Australian Business Chamber — Covid-19 Resources For Businesses.
If you are not a the South Australian Business Chamber member now is the right time to join. Find out more about the South Australian Business Chamber membership and the great benefits by calling (08) 8300 0000 or visit us at The South Australian Business Chamber — Become a Member.
