Recently, on 1 May 2019, the Fair Work Commission handed down a decision to change the Real Estate Industry Award.

This decision concerns employees that are classified as part-time commission only employees. As of 30 June 2019, employers will no longer be able to employ part-time employees as commission only salespeople from the first pay period on or after 30 June. This change is reflected in the Real Estate Industry Award at clause 16.1.

The Fair Work Commission have further stated that this new decision will affect all existing employees that fall under these conditions.

What does this mean for you as an employer?

Under the new decision it will be crucial to examine all existing contracts for those who you employ as a part-time employee on a commission only basis.  From 1 July, their payment method will need to change to the hourly rates provided by the award.

If you do have individuals in you employ that are part time and commission only, you will be required to re-draft their contracts to reflect the changes that will come into effect on the first pay period after 30 June 2019.

What happens next?

For further information visit the Fair Work Australia website: https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/changes-to-the-real-estate-award.

If this article has raised any concerns for you or your organisation please do not hesitate to contact either John Hayward or Jessika Reghenzani on (07) 4046 1124, for advice specific to your circumstances.

This article has been prepared with the assistance of Ruby Hedrick, law graduate.