Commission Only Employment

Date: 29 May 19

On the 1 May 2019 the Fair Work Commission handed down a decision to change the Real Estate Award.  The decision changes how commission-only payments for salespeople apply and who they apply to. 

The changes apply in two stages. The first from the first full pay period on or after 30 April 2019 and the second from the first full pay period on or after 30 June 2019.

30 April 2019 changes

The phrase “was an active licensed real estate agent” in clause 16.3 has been replaced with “has operated his or her own real estate business”.

A definition of a real estate business has been included to mean “a business involved in the sale of real property or businesses”.

30 June 2019 changes

Employers will no longer be able to employ part-time employees as commission-only salespeople from the first pay period on or after 30 June. 

There will be no ‘grandfathering’ of the clause, which means the payment method for all current part-time commission-only employees will need to change to the hourly rates provided in the award.