The Real Estate Industry Award is about to see significant changes.
The Fair Work Commission (FWC) has outlined significant changes to the Real Estate Industry Award 2010 (REI Award). The potential changes are outlined below but it should be noted that they are yet to be formally confirmed at this point in time.
An increase to minimum Award wages
The minimum Award rate of pay for Real Estate Employees will be increased. The increases are yet to be confirmed.
Increase to Minimum Income Threshold
The Minimum Income Threshold is currently 110% of the minimum wage for the employee’s Award classification. The FWC has expressed a “provisional view” that the Minimum Income Threshold will increase to 125% of the rate for the employee’s Award classification.
Commission only review and cancellation
In addition, the FWC decided to introduce a commission-only ‘review and cancellation’ provision. This provision will mean employers will need to annually review the gross income of a commission-only employee and where that income falls below the Minimum Income Threshold amount, the employee cannot continue to be employed on a commission-only basis.
Allowances provisions
In addition to these disputed changes, there are potentially new allowances to be included in the new Award. These relate to:
the introduction of a new mobile phone allowance provision
an alteration to the entitlement to commission or bonuses after termination of employment
the introduction of a new motor cycle allowance
What should employers do now?
Employsure anticipates the proposed changes will come into effect on 2 April 2018. In the coming months, we will keep Real Estate industry clients informed as the matter progresses through the FWC and more details are finalised. Employsure will be providing more detailed information relating to this important decision.
For more information please contact Employsure on 1300 651 415.
