For many young people, their first job is a way to fund their lifestyle and keep themselves busy during time off school. Hiring young employees is a chance to develop a positive work ethic, help them understand the expectations of being in the workforce, and learn new skills to improve their employment opportunities later in life. However, hiring young employees brings an extra set of obligations to ensure they are treated fairly and that they are safe in the workplace.
In this best practice guide for employers, we explore the rules and restrictions when hiring young employees, paying young employees and the benefits.
Benefits of hiring young employees
Hiring young talent is good for business. Companies who seek out young talent in the local community are deemed to be more attractive places to work. By tapping into the youth employment market, this demonstrates the company’s ability to embrace new ways of thinking and optimism towards the new generation of workers.
Other beneficial reasons for hiring young people include:
- Allowing staff and managers to improve their coaching or training skills.
- Bringing new ideas and ways of thinking into older, more established industries.
- Becoming a positive influence on young people and guiding them towards better employment opportunities.
- Creating a positive brand image for the company.
Challenges of hiring young employees
Young employees can be beneficial for a business, but they can also present unique challenges. As young employees are inexperienced, additional steps need to be taken to ensure that any potential for exploitation is minimised. They may be unfamiliar with health and safety risks, and not always confident enough to speak up. Most young employees also do not understand their employment rights.
Some other challenges of hiring young employees include:
- Lack of sufficient education and training- Young people sometimes may not have access to enough education and training before they start employment.
- Negative perceptions- Some employers are concerned about hiring young employees due to their lack of work experience, maturity, and that they may not have familiarity with health and safety systems.
Paying young employees
Employees under 18 years of age are subject to the same fair bargaining rules for employment agreements as adult employees. However, there is a pay scale for young workers that employers should be aware of.
- There is no minimum wage for employees under the age of 16, but employers must remember to start paying the correct minimum wage after the employee turns 16
- The "starting out" minimum wage applies to new employees aged 16-17 years old who have not worked for the current employer for a continuous period of 6 months.
- The "starting out" minimum wage can also apply to employees aged 16-19 years old who are completing industry training where they earn at least 40 credits to gain a qualification in the industry they are training in.
- The ‘training’ minimum wage applies to workers aged 20 and over who are completing industry training where they earn at least 60 credits to gain a qualification in the industry they are training in.
Minimum wage – 1 April 2025
As of 1 April 2025, the minimum wage rates (before tax) are as follows.
| Adult Minimum Wage | Starting-Out Minimum Wage | Training Minimum Wage |
|---|---|---|
| $23.50 per hour (for employees aged 16 years and over where the starting-out and training wages do not apply) | $18.80 per hour | $18.80 per hour |
Restrictions
Young employees must find the right balance between work and school obligations. Employers who hire school students must be careful the job does not interfere with school attendance. This means employees under 16 years cannot work during school hours, before 6.00am or after 10.00pm on school nights.
There are no restrictions on how many hours an employee under 16 years can work on weekends or during school holidays.
There are additional health and safety restrictions for young employees under 15 years old. Employers must NOT allow an employee younger than 15 years old to:
- Do any work that is likely to harm them e.g. using heavy machinery, driving, riding tractors, forklifts or lifting heavy loads.
- Work on-site in logging, manufacturing or construction.
Employees under the age of 18 are not allowed to work in a licensed area used for the purpose of selling liquor. There are exceptions to this rule if the employee is hired to:
- Prepare and sell food.
- Clean, repair or maintain equipment.
- Alter or restock the area with supplies or equipment.
- Check or remove cash.
- Remove and replace equipment
Employees under 18 are also not allowed to work in areas where a license has been obtained to operate gaming machines. For employees under 20 years, they cannot work in parts of a casino where there is gambling, and they cannot perform any gambling-related tasks.
Here are some helpful tips for employers hiring young workers:
- Record the employees age and birth date if they are under 20 years old.
- Educate the importance of showing up on time.
- Explain that showing up late for work means their co-workers or employers will have to make up for the loss of time.
- Encourage them to act professionally and be respectful towards members of the public.
- Provide an employee handbook detailing policies and procedures specific to the business.
- Walk all employees around the work premises and identify all risks.
- Encourage reporting of workplace hazards.
- Ensure there is a way new starters can make bullying complaints.
- Ensure that new starters know the importance of and how to escalate health and safety incidents to their manager or safety representative.
Building better businesses with Peninsula
Employers and business owners need to stay up to date with their duties and responsibilities. They must understand the specific employment and health and safety legislation when considering hiring young employees. We understand the nuances of employing young people and the ways you must integrate them in your workplace. At Peninsula, we offer tailored support and services that meet your needs.
For further advice on how to hire and manage young employees in the workplace, contact Peninsula.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
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