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Many employers will be disappointed with the Fair Work Commission's decision to scrap some junior pay rates, but the broader implications of the ruling remain to be seen, a workplace lawyer says.

Employers are likely to view the abolition of junior rates for employees aged 18 and over, in three modern awards, as reducing their incentive to take on younger employees, says Mallesons senior consultant Brett Feltham.

Employer group leaders agree; ACCI CEO Andrew McKellar says that at a time when youth unemployment is already around 10%, abolishing junior rates is "not the right step"...