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Important Junior Rate Changes to the Retail Award

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By Renee Karakinos, Lawyer

The Fair Work Commission Full Bench has formed a provisional view to vary clause 17.2 of the General Retail Industry Award 2020 (Retail Award) to limit the application of junior rates.

There are currently 8 classifications under the Retail Award and each classification is subject to junior percentages. Moving forward, if the proposed variations are implemented, only employees classified as Retail Employees Level 1 to Retail Employees Level 3, will be subject to junior percentages. In turn this promotes the hiring of more junior staff in less senior roles and recognises that employees in senior roles have the necessary skills and competencies applicable to those classifications, irrespective of age.

It is the Fair Work Commission’s provisional view that the variation will operate from 1 February 2021, at the same time the National Minimum Wages under the Retail Award will increase by 1.75%.

Any party opposed to the Commission’s provisional view in respect of the operative date of the variation determination is to file submissions setting out their opposition by 4pm Tuesday, 1 December 2020. Any submissions in reply are to be filed by 4pm Thursday, 3 December 2020.

Watch this space.

For any employment queries, please contact our Employment Law team by email or on telephone +61 3 8540 0200.