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Part-time commission model set to change

10 June 2019 Tim Neary

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.

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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.”

Part-time commission model set to change
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