April 3, 2018
Please note that the information provided below is relevant as of 03/04/18. To receive news on the latest legislative changes, sign up for our Free Monthly Newsletter.
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.
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
For news on the go, subscribe to our YouTube channel where our employment relations adviser simplifies complex legislation and shares relevant updates for busy business owners.
Modern Awards and Enterprise Agreements (EA) are terms all employers would hear quite frequently. They are, however, also commonly misunderstood. Do you...
Please note that the information provided below is relevant as of 15/12/14. For updated news on Modern Awards please visit our latest guide here. From 31...
Please note that the information provided below is relevant as of 07/03/16. To receive news on the latest legislative changes, sign up for our Free Monthly...
Please note that the information provided below is relevant as of 05/01/17. To receive news on the latest legislative changes, sign up for our Free Monthly...
I’ve met small business owners and listened to how they turned their dream into reality. I’ve been inspired by their resilience and captivated by their...
There have been changes to WHS Legislation in Queensland, that affect organisations in the amusement industry. The new amendments place greater...
[Click here to download the map above] Workplace health and safety model laws Safe Work Australia developed a set of workplace health and safety...
Learn the essentials of managing a construction or trades business in under an hour. Our construction & trades online masterclass is back by popular...