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Changes To The Real Estate Industry Award 2010

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By James Sanders, Associate, MST Lawyers

As part of its four-yearly review of modern awards, on 1 May 2019, the Fair Work Commission decided to amend the Real Estate Industry Award 2010 (Award) by making changes to Commission Only Employees. These variations follow significant variations made to the Award only last year by the Fair Work Commission.

The decision varied the Award effective 30 April 2019 and will make further variations that will be effective from the first full pay period after 30 June 2019.

30 April 2019 Variations

From 30 April 2019, the Award was amended by:

  1. altering the class of employees who can be employed as commission only employees to only those who ‘have been engaged in property sales or commercial, industrial or retail leasing as a Real Estate Employee Level 2 or higher with a Licenced Real Estate Agent, or has operated his or her own real estate business, for at least 12 consecutive months in the 3 years prior to entering into a commission only arrangement’; and
  2. Inserting a new clause to define the term ‘real estate business’ to mean ‘a business involved in the sale of real property or businesses’.

30 June 2019 Variations

From 30 June 2019, the Award will be amended so that:

  1. the sentence ‘An employee paid on a commission only basis must not be engaged as a casual’ is replaced by ‘An employee paid on a commission-only basis must not be engaged as a part-time or casual employee’;
  2. Clause 16.3(a)(v) states ‘the employee is not engaged as a part-time employee, a casual, a junior, a Real Estate Employee Level 1 or a trainee’.

Practically, what this means for affected part-time employees is that, from the first full pay period after 30 June 2019 onwards, they will begin to accrue leave entitlements on a full-time basis, but will probably continue to work as much or as little as they choose throughout the week as their hours of work are typically not monitored.

Click here to review the relevant FWC determination.

This award change will not affect any employees who are covered by a registered certified, collective, or enterprise agreement.

If you would like to discuss the above changes will affect your business, please contact the MST Lawyers’ Employment Law team on 03 8540 0229.