There have been some significant changes recently decided by the Fair Work Commission (the Commission), regarding commission only arrangements under the Real Estate Industry Award.

Definition Updates

The first change, which applied from the first pay period on or after 30 April 2019 is designed to simply provide clarity with the Commission removing the phrase:

‘was an active licensed real estate agent’ from clause 16.3 and replaced it with ‘has operated his or her own real estate business’.

Plus, a definition of a real estate business has been added to clause 16 for clarity, confirming the real estate industry is  ‘a business involved in the sale of real property or businesses’.

Part Time Employees

The significant and potentially disruptive change though, is that from the first pay period on or after 30 June 2019, real estate industry employers WILL NOT be able to employ staff classified as part-time, as commission-only salespeople from this date. This decision applies to both existing employees and new employees, meaning that ALL part-time employees will need to be employed on an hourly rate basis.

Commission structures on-top of the hourly rate is an option for incentives going forward.

It’s important that you clearly communicate these changes and the effect it could have on current arrangements with any of your part-time, commission only real estate agents as soon as possible. You’ll also need to set a strategy for future payments and incentives.

 

If you need help managing these changes and creating new incentive structures, get in touch with our team today.

 

You can read more on this subject here: https://www.fairwork.gov.au/view.aspx?folderid=769&articleid=8950

 

*This is general information only and doesn’t take your specific circumstances into account.