‘Adult’ juniors to receive full adult rate under Retail, Fast Food awards

On 31 March, a Full Bench of the Fair Work Commission handed down its decision in the junior rates case, which was first initiated by application of the Shop, Distributive and Allied Employees Association (SDA) in June 2024 and sought an increase to minimum rates applicable to juniors employed under the General Retail Industry Award 2020, the Fast Food Industry Award 2020 and the Pharmacy Industry Award 2020.

In respect of juniors employed under these three modern awards – currently designated as employees who are aged under 21 – the Full Bench settled on different outcomes for workers aged under 18, and those aged 18 or over (i.e. adults).

Firstly, in reference to juniors aged under 18, the Full Bench determined that variation of junior rates/percentages was not necessary, noting that the “work value” of employees in this aged group was likely lower, “having regard to factors relating to maturity, life experience, and opportunity to have obtained work experience”. Other considerations such as “minors’ position of vulnerability” and a “greater disadvantage in the labour market” further “supported retaining the current arrangement of a gradual increase in rates from age 15 (or under) to adulthood at age 18”.

Separately, when turning to consider the plight of junior employees aged 18 or over – being employees “who are adults” – the Full Bench was persuaded that “variation of their minimum wages was justified for work value reasons, in respect of each of the three awards”. The summary of decision identifies:

[12] The Full Bench decided to vary the rates payable to adult junior employees, to set them at a rate of 100% of the full adult minimum wage in respect of the relevant classification of each award. However, to better achieve the modern awards and minimum wages objectives, the Full Bench decided to retain the current percentage rates for adult junior employees with less than six months’ experience with their current employer.

Ultimately, ‘adult’ juniors aged 18 or over who are employed under the Retail, Fast Food or Pharmacy awards, who have completed six months or more service with their employer, will be entitled to be paid the full adult award rate for their relevant classification, rather than a lesser percentage based on their age.

The Full Bench will now take submissions on the method of implementation of the decision, though their provisional view is that the first incremental increase of 5% would occur from 1 December 2026, with subsequent 5% increases being applied each 1 July and 1 December until the 100% adult rate is achieved. The Full Bench’s provisional view is best illustrated by the table appearing on page 4 of the summary of decision, accessible on the FWC’s dedicated webpage, here.