The Fair Work Commission (FWC) has issued its long-awaited decision in the Junior rates application (AM2024/24), marking a significant development for employees working in the fast food, retail and pharmacy sectors.
The decision follows an application lodged by the Shop, Distributive and Allied Employees’ Association (SDA) on 6 June 2024, which sought changes to junior wage rates for employees aged 20 years and under in 3 modern awards:
- Fast Food Industry Award 2020
- General Retail Industry Award 2020
- Pharmacy Industry Award 2020
Key outcomes of the decision
The Full Bench determined that adult junior employees — those aged 18 to 20 — who have completed 6 months’ service with their current employer should receive the full adult rate of pay under the applicable award.
Under the decision:
- employees aged 18 to 20 will be entitled to 100% of the adult rate after 6 months’ service with their current employer
- current junior percentage rates will continue to apply for adult junior employees with less than 6 months’ service
- there will be no changes to junior rates for employees under 18 years of age.
The Commission said the decision reflects changing community expectations and workforce participation patterns, while balancing the operational impacts on employers.
Changes to be phased in
The Full Bench has not yet finalised implementation arrangements. Parties will be given a further opportunity to make submissions about transition and timing.
However, the Commission’s provisional view is that the changes should be introduced gradually, with:
- phased implementation beginning from 1 December 2026
- final implementation occurring by 1 July 2029.
Further directions will be issued by the Commission regarding the implementation process.
Employers should review award obligations now
While the changes are not expected to commence immediately, employers covered by the affected awards should begin reviewing their current payroll practices and award interpretation processes.
The decision highlights the importance of understanding how junior rates, classifications, service periods and award entitlements operate within applicable modern awards. Employers should ensure they have clear processes in place to correctly identify employee age categories, monitor service periods and apply the correct rates of pay as changes are introduced over time.
Businesses operating in retail, fast food and pharmacy sectors may also need to assess the impact on workforce planning, labour costs and payroll systems ahead of the proposed phased implementation.
APA training and support
The Australian Payroll Association (APA) provides specialised training to help payroll professionals and employers correctly interpret and apply modern awards, including the General Retail Industry Award 2020.
APA’s Understanding the General Retail Industry Award course provides detailed guidance on classifications, junior rates, penalty rates, allowances, overtime, rostering and compliance obligations relevant to retail employers. The course is designed to help organisations reduce payroll risk and improve award compliance outcomes.
Find out more about APA’s Understanding the General Retail Industry Award course here: Understanding the General Retail Industry Award
Impact on employees
For employees aged 18 to 20, the changes are likely to result in increased earnings once they reach 6 months of employment with the same employer.
The decision is expected to significantly affect industries that rely heavily on younger workers, particularly retail and fast food sectors where junior rates are commonly applied.
APA members will also be kept up to date on any further developments and changes arising from the Fair Work Commission’s junior rates decision, helping employers stay informed of future award variations and compliance obligations.
