Part-time commission-only real estate employment is set to be phased out following a recent decision from the Fair Work Commission, according to one workplace expert.
Employsure said that the Real Estate Industry Award 2010 was thrown into the spotlight during the FWC’s four-year review, and the FWC ruled that part-time commission-only employment was “neither useful nor relevant”.
Senior employment relations adviser at Employsure Sophie Joselyn said that, as a result, commission-only employees can no longer be employed on a part-time basis.
“New and existing commission-only part-time employees must receive the provisions and entitlements outlined in the Real Estate Industry Award 2010,” she said.
Ms Joselyn said this comes into effect on 30 June 2019.
“Remunerating part-time employees on a commission-only basis after this date will constitute a breach of the Award and may incur a penalty.”
Ms. Joselyn said employers should take steps to remain compliant.
“Current part-time commission-only employees can instead be engaged on a full-time, 38-hour per week basis,” she said.
“This will allow the employer to continue to remunerate the employee on a commission-only arrangement. Employers and employees will need to mutually agree to change the contract of employment, and it is recommended the employee signs a new contract of employment containing the new terms and conditions of employment.”
Ms Joselyn said there are alternatives.
“The employer may choose to remunerate the part-time employee on a debit-credit or target-based commission structure,” she said.
“Employers should start discussions with current part-time commission-only employees regarding the changes and the alternative arrangements available to them.”