It has been described as a decision which will "severely hit retailers financially".
Peak industry body the Australian Retailers Association (ARA) has condemned a decision to abolish junior wage rates for 20-year-old employees.
The ARA said the decision was handed down by the Fair Work Commission last Friday.
ARA Executive Director Russell Zimmerman said the move will kill jobs for youth as well as hinder skills developments.
“This junior wage increase will severely hit retailers financially, as well as change the face of employment for 20 year olds.
“Young people are done a disservice if our system of wage regulation locks them out of employment opportunities – and it is now clear that young people will be forced to compete against older and more experienced job-seekers.
“Unfortunately, youth unemployment is at its highest level in 11 years and with the unions case to remove junior wage rates now successful, young Australians are going to find employment near impossible.
“What retailer is going to employ a young Australian without any experience in the industry, when they can employ someone a few years older with more experience for exactly the same wage?
"This decision will prove detrimental to both employers and employees.
The ARA is looking into appeal options, Zimmerman said.
“The retail sector is struggling, and although the industry is just starting to show signs of improvement in terms of retail employment, this is certainly a major setback."