Reminder about Fair Work Ombudsman changes to Commission only employment requirements - Real estate industry bulletin 207
14 October 2019
- trading or financial corporations, which include many businesses with a ‘Pty Ltd’ or ‘Ltd’ in their name e.g. Smith Pty Ltd trading as Home Real Estate; and
- incorporated associations and other not-for-profit organisations that are trading or financial corporations.
- sole traders e.g. Jane Smith trading as Home Real Estate;
- unincorporated partnerships e.g. Jane and Bob Smith trading as Home Real Estate;
- unincorporated trust arrangements e.g. Jane and Bob Smith as trustees for Home Real Estate; and
- incorporated associations and other not-for-profit organisations that are not trading or financial corporation.
Who is covered under the Real Estate Award?
- employers and their employees in the real estate industry who fit within the classification of the award, including property sales associates, representatives and supervisors;
- property management associates, representatives and supervisors; and
- strata / community title management associates, representatives and supervisors.
Commission only employment requirements
- be a Real Estate Employee Level 2 or above; and
- have worked in property sales or commercial, industrial or retail leasing as a real estate employee level 2, or as a licensed real estate agent for at least 12 consecutive months over the previous 3 years.
- employees who were employed on the above basis before 2 April 2018, need to meet the new minimum income threshold amount rules; or
- if the employee was already engaged before 2 April 2018 with the above conditions, they can continue their commission only arrangement, providing their arrangement is reviewed each year and meets the new minimum income threshold amount rules.
New minimum income threshold amount rules
- the minimum annual rate for their classification under the award
- an extra 25%.
Minimum threshold review period now in effect
- before 2 April 2018 – should have had their arrangement reviewed by 2 April 2019
- on or after 2 April 2018 – need to have their arrangement reviewed no later than 12 months after the arrangement started.
Pay and entitlements less than the award?
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