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Real Estate Industry Award changes now in effect

Modern AwardsApril 3, 2018

Real Estate Industry Award changes now in effect (Last Updated On: April 4, 2018)

On 2 April 2018, the changes made by the Fair Work Commission (FWC) to the Real Estate Industry Award 2010 (REI Award), come in to effect.

The changes made to the REI Award are substantial and it is vital that you understand and consider the impact on they have on your business. To ensure you remain compliant with the REI Award, its important that you review the changes and take any necessary action.

We have outlined the key changes below which can be read along with a copy of our Real Estate Industry e-guide.

Here’s what you need to do from 2 April 2018:

Re-classify all employees
A new classification structure is being introduced (including a new level for management)

Ensure all employees are paid at least the Award minimum for their classification
New higher rates of pay are effective from the first full pay period starting on or after 2 April 2018
We will be circulating a new Pay Rate Schedule to Employsure clients to assist with this

Check allowances are paid correctly to all eligible employees 
Mobile phone and motorcycle allowances need to be paid to eligible employees in accordance with the revised clauses in the award

Review the percentage of commission paid to commission-only employees
There is a new minimum commission-only rate of 31.5% of the employer’s gross commission (as defined in the Award)

All leave must be paid at the time leave is taken
Make sure commission-only employees are paid at their base rate of pay for any leave periods to which they are entitled under the NES.
This payment must be made at the time leave is taken.
Note: this can be debited from the employees commission payment, as long as the commission-only rate is more than the 31.5% minimum by at least an equivalent amount

Commission-only review and cancellation
Review the wages of commission-only employees on an annual basis to ensure they earned at least 125% of the base rate for their classification.
If they haven’t, you need to revert the employee to a salaried position.
The first review doesn’t need to happen until 2 April 2019, or 12 months after a commission-only arrangement was entered into, whichever is later.
Note: It is strongly recommended that you closely monitor the performance of commission-only employees, and consider implementing a performance management process if they look unlikely to meet this threshold

Contact Employsure for advice if:

  • you have commission-only employees. We recommend you re-issue contracts to these employees as there have been substantial changes that affect their employment terms and conditions
  • you do not currently pay permanent employees for leave at the time leave is taken
  • employment ends with an employee entitled to commission. We can help ascertain eligibility for commissions that are due post-termination
  • you have any commission-only employees engaged on a casual basis, as casual commission-only arrangements are no longer permitted

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