Twenty-year-olds in an adults world

On Friday 21 March 2014, the Full Bench of the Fair Work Commission (Commission) handed down a decision to vary the General Retail Industry Award 2010 (Award) to pay 20-year-old retail workers the same rate of pay as adult workers, after six months with their employer.

Currently, 20-year-old retail workers receive 90 per cent of the relevant adult rate under the Award.

The decision

The Shop, Distributive and Allied Employees Association (SDA) sought the increase as part of the two-year modern award review.

In making its decision, the Commission noted that the current rate of pay was 'not achieving the modern awards and minimum wages objectives', and in particular that:

• by the age of 20-years-old, a significant number of employees working in the retail industry have at least three years' experience;
• there is generally little difference between the work and duties that a 20-year-old performs, as compared to the work and duties performed by 21-year-olds under the class of Retail Employee Level 1 in the Award; and
• most retail employees in this classification achieve a satisfactory level of proficiency in respect of their duties and responsibilities after about 6 months of employment.

The implications

The new rate of pay will be phased-in over two years - 95% from 1 July this year and then the full amount from 1 July next year.

It is essential that employers ensure they pay their employees at least the minimum rates of pay under the Award and that any increases in minimum Award rates are appropriately passed on to employees.

For more information on this decision and to ensure compliance with the Commission's order, please contact our Employment & Industrial Relations team on +61 3 9608 2233.