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FWC Decision - 20 year olds entitled to 100% of Adult Wage in Retail Industry

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The FWC has made a decision that 20 year old employees working under the Retail Industry Award are now entitled to 100% of the adult wage rather than 90%.

On Friday 21 March 2014, the Full Bench of the Fair Work Commission varied the General Retail Industry Award 2010 as part of the modern awards review.

The award has been varied so that twenty year old retail employees are entitled to the full adult rate of pay.  Previously, 20 year old retail employees were entitled to 90% of the adult rate.

To be entitled to the higher amount, the employee must be employed for at least 6 months with their employer.

The Commission considered that:

  • “At the age of 20, a significant number of employees in the retail industry have at least three years of experience;
  • There is generally little difference in the work and duties performed by 20-year-old and 21-year-old employees in the Retail Employee Level 1 classification under the Retail Award; and
  • Most retail employees in this classification achieve a satisfactory level of proficiency in respect of their duties and responsibilities after about six months of employment.”

The increase will be phased in from 1 July 2014 (95%), and 1 July 2015 (100%) and only applies once the employee has been employed for 6 months..

The Full Bench does not consider that this will have a significant negative impact on business costs or the viability of retail businesses or employment growth.

For more information, see:

Fair Work Commission

Summary of decision

Full decision

 

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