General Retail Industry Award Pay Rates

The General Retail Industry Award is one such comprehensive framework that outlines the rights and responsibilities of employers and employees in the retail sector. Navigating the complexities of employment awards in Australia can be daunting. This guide breaks down the key aspects of the award, helping both parties understand their entitlements and obligations.

What Is the General Retail Industry Award?

The General Retail Industry Award is a legally binding document issued by the Fair Work Commission. It applies to employees working in retail establishments across Australia, covering businesses such as supermarkets, department stores, specialty shops, and online retailers. The award sets out minimum pay rates, working hours, penalty rates, allowances, and other conditions of employment.

Who Is Covered by This Award?

The General Retail Industry Award applies to:

• Retail employees working in sales, stock control, warehousing, and customer service roles.
• Employees in businesses providing rental services, such as equipment or party hire.
• Supervisory staff in retail operations.

However, certain categories of workers, such as independent contractors and employees under other specific awards or enterprise agreements, may not fall under this award. It’s important for employers to confirm coverage to ensure compliance.

Examples of Retail Businesses Covered

Some examples of businesses falling under this award include:

• Supermarkets and Grocery Stores: Chains such as Coles or Woolworths.
• Clothing Retailers: Specialty stores selling apparel, footwear, or accessories.
• Electronics Retailers: Businesses like JB Hi-Fi or appliance stores.
• Online Retailers: E-commerce platforms with warehousing and customer service teams.
• Department Stores: Large outlets like Myer or David Jones.

These businesses employ a wide range of workers, from casual checkout operators to full-time stock controllers and managers.

Key Components of the General Retail Industry Award

1. Minimum Wages

The award prescribes minimum wages based on job classification and experience level. Key points include:

• Different pay rates for juniors (under 21 years of age) and adults.
• Wage increments for higher duties and supervisory roles.
• Annual wage reviews conducted by the Fair Work Commission.

For instance, junior employees earn a percentage of the adult rate, increasing with age. Retail employees in specialised roles such as visual merchandising or IT support may also have specific rates.

2. Penalty Rates and Overtime

Penalty rates apply to work performed outside regular hours, such as weekends, public holidays, or late nights. Common penalty rates include:

• Saturdays: 125% of the base rate.
• Sundays: 150% of the base rate.
• Public holidays: 225% of the base rate.
• Overtime rates: Starting at 150% for the first three hours and 200% thereafter.

Employers must also ensure employees take appropriate rest breaks after working overtime or shifts that extend beyond standard hours.

3. Allowances

The award provides additional allowances to employees under specific conditions, such as:

• Uniforms: Reimbursement for employer-required clothing.
• Tool Allowance: Payment for using personal tools or equipment.
• Meal Allowance: Compensation for working extended hours or through meal breaks.

These allowances are updated periodically to reflect changes in living costs.

4. Hours of Work

Standard working hours under the award are:

• 38 hours or more per week for full-time employees.
• Proportional hours for part-time employees, agreed upon in writing.
• A maximum of 12 hours per shift, ensuring employees do not face excessive workloads.

Flexible working arrangements are available for employees with caregiving responsibilities, disabilities, or other qualifying needs.

5. Breaks and Leave Entitlements

Employees are entitled to:

• Meal Breaks: A minimum of 30 minutes after working five hours.
• Rest Breaks: Short breaks during long shifts.
• Annual Leave: Four weeks of paid leave per year, with additional entitlements for shift workers.
• Personal Leave: Up to 10 days annually for illness or caregiving.
• Parental Leave: 12 months of unpaid leave for eligible employees.

Compliance Requirements for Employers

Employers must:

• Provide pay slips detailing hours worked, rates, and deductions.
• Ensure employee classifications align with the tasks performed.
• Maintain accurate records for seven years, including timesheets and leave balances.
• Regularly review award updates to stay compliant.

Penalties for Non-Compliance

Failing to comply with the General Retail Industry Award can result in severe consequences, including:

• Fines: 3 times the value of the underpayment.
• Back Payments: Employers may need to repay underpaid wages with interest.
• Legal Actions: Disputes may lead to costly litigation or damage to a business's reputation.

For example, a retailer who fails to pay appropriate penalty rates for weekend shifts may be required to pay backdated wages and face additional fines from the Fair Work Ombudsman. In a high-profile case, a national retail chain was fined for underpaying staff by failing to correctly apply penalty rates, highlighting the importance of compliance.

Resolving Disputes

If disputes arise, the Fair Work Commission serves as the first point of contact. Employees can also seek assistance from unions or legal advisors. Employers are encouraged to resolve conflicts internally through clear communication and adherence to award guidelines.

Recent Changes to the Award

The Fair Work Commission periodically reviews and updates the General Retail Industry Award. Recent changes may include:

• Adjustments to minimum wages following the annual review.
• Amendments to penalty rates for specific times or days.
• Updates to allowances in line with inflation or industry standards.

Employers and employees should regularly check the Fair Work Ombudsman’s website for the latest information.

Why Compliance Is Crucial?

Compliance with the General Retail Industry Award not only ensures that businesses avoid penalties but also promotes a fair and ethical workplace culture. Employees who feel they are valued and fairly compensated are likely to be more productive and loyal, which benefits the overall business.

Non-compliance can lead to reputational damage, making it harder for businesses to attract and keep talented workers. For example, a boutique clothing retailer in Sydney faced significant backlash on social media after workers reported unpaid overtime, resulting in a loss of customer trust and reduced sales.

Ensures Fair Treatment for Employees

The General Retail Industry Award ensures fair treatment for employees while providing employers with a clear framework for managing their workforce. By understanding the key components of the award, both parties can foster a compliant and harmonious work environment. Staying informed and proactive is essential for navigating the complexities of this important industrial instrument.

For more information, visit the Fair Work Ombudsman’s website or consult a workplace relations expert.

Disclaimer

The content presented in this article is intended solely for informational purposes. While every effort has been made to ensure the information is accurate and up to date, no guarantees are made regarding its completeness, reliability, or validity.

The author and publisher shall not be held responsible for any loss or damage resulting from the use of the information in this article. Readers are advised to use their discretion and rely on the content at their own risk.

Retail Industry Award Rates

Award Code: MA000004 Effective: 01/07/2024 Published: 26/06/2024  

Adult Full-time & part-time

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Casual 

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Junior 

From 1 May 2021, junior rates of pay do not apply to Retail employees level 4 and above - see the Adult tables for rates of pay. 

Junior - Full-time & part-time - Under 16 years of age 

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Junior - Full-time & part-time - 16 years of age 

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Junior - Full-time & part-time - 17 years of age 

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Junior - Full-time & part-time - 18 years of age 

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Junior - Full-time & part-time - 19 years of age 

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Junior - Full-time & part-time - 20 years of age and employed by the employer for 6 months or less 

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Junior - Full-time & part-time - 20 years of age and employed by the employer for more than 6 months 

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Junior - Casual - Under 16 years of age 

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Junior - Casual - 16 years of age 

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Junior - Casual - 17 years of age 

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Junior - Casual - 18 years of age 

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Junior - Casual - 19 years of age 

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Junior - Casual - 20 years of age and employed by the employer for 6 months or less 

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Junior - Casual - 20 years of age and employed by the employer for more than 6 months 

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Apprentice - 4 year apprenticeship - Started before 1 Jan 2014 

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Apprentice - 4 year apprenticeship - Started after 1 Jan 2014 - Did not complete year 12 

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Apprentice - 4 year apprenticeship - Started after 1 Jan 2014 - Completed year 12 

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Apprentice - 3 year apprenticeship - Started before 1 Jan 2014 

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Apprentice - 3 year apprenticeship - Started after 1 Jan 2014 - Did not complete year 12 

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Apprentice - 3 year apprenticeship - Started after 1 Jan 2014 - Completed year 12 

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Adult Apprentice - 4 year apprenticeship - Started before 1 Jan 2014 

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Adult Apprentice - 4 year apprenticeship - Started after 1 Jan 2014  

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Adult Apprentice - 3 year apprenticeship - Started before 1 Jan 2014 

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Adult apprentice - 3 year apprenticeship - Started after 1 Jan 2014 

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Allowances

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