From 1 May 2021, Junior rates for classifications level 4 to level 8 under the General Retail Industry Award 2020 will no longer apply, although junior rates continue to apply to junior employees classified in levels 1 to 3. Junior employees under the Award classified as level 4 and above under the award must now be paid at least the adult rate of pay for their relevant classification.
This change was the result of an application made by the Shop, Distributive and Allied Employees Association (SDA), which initially called for junior rates to be abolished across all 8 classifications under the Award. The SDA argued that junior employees, especially in higher classifications, had the same skills and competencies required to perform the roles, and that on that basis, the adult rate should apply regardless of the age of the employee.
In the end, the FWC determined that junior rates would continue to apply to junior employees in classifications 1 – 3, and that junior rates will no longer apply to employees classified as 4-8 under the Award.
This change is unlikely to impact a large number of employers, as most junior employees tend to be engaged in roles which are classified under the Award as level 1 to 3.
Junior Employees under the award are employees aged 20 years and younger, however, this change should only impact employees aged 19 years and younger, as most 20-year-old employees should already be receiving 100% of the adult rate based on the period of time they have been employed.
Level 4 (and above) employees tend to be employees who are in supervisory or managerial roles, as defined by the award. Please review the award classifications here.
Employers should review their current arrangements to determine if this change impacts their business. Employers who have Enterprise Agreements based on these rates of pay should also review their arrangements to ensure employees are not being paid less than the base rate of pay under the Award.
ER Strategies has updated their General Retail Industry Award 2020 wage schedule to reflect the changes.
Clients of ER Strategies can access a copy by logging into Online HR, or by calling the team on 1300 55 66 37.
For non-clients, copies of our easy-to-read wage schedules are available for free download via our website. Click here to access your copy.