Major changes to junior rates are expected to begin from December 2026, with a staged approach likely to significantly impact labour costs for affected businesses. Under the changes, retail, fast food and pharmacy workers aged 18 to 20 will transition to adult pay rates after six months with the same employer.
Here’s what’s coming, what matters most for SMEs, and where preparation will save you time, cost and risk
From 1 December 2025, updates to six Awards clarify that if a business drops below 15 employees because of insolvency or liquidation, affected staff may still be entitled to redundancy pay under the National Employment Standards. In these circumstances, employers cannot rely on their reduced headcount to avoid redundancy obligations.
Dodgy job ads put employers at risk of serious penalties
Wage underpayments can now carry serious consequences for employers, making it more important than ever for businesses to check their payroll systems, improve record keeping and ensure staff are paid correctly, fairly and on time.
The rules on directing staff to take annual leave vary across Awards and agreements, so it’s important to check what applies to you.
Learn how equitable pay practices foster better outcomes and legal compliance.
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