Commission-only employees can no longer be part-time

On May 1 the Fair Work Commission Full Bench issued a significant decision varying the Real Estate Industry Award 2010.

The decision has removed the ability to engage part-time employees and remunerate them on commission-only arrangements effective as of the first full pay period that starts on or after June 30, 2019.

The decision comes as part of the four-yearly review of modern awards.

What does this mean for employers?

Employers will need to cease remunerating any part-time employees on a commission-only arrangement by June 30.

Remunerating part-time employees on a commission-only basis after this date will constitute a breach of the award and may incur a penalty.

What can we do?

Current part-time commission-only employees can instead be engaged on a retainer/commission arrangement. The employer and employee will need to agree to change the contract of employment from commission-only to debit/credit.

Alternatively, the employer may choose to remunerate the part-time employees on a commission-only basis on a full-time, 38-hour per week basis. This will allow the employer to continue to remunerate the employee on a commission-only arrangement.

If the employee agrees to change their basis of employment, it is recommended the employee sign a new contract of employment containing the new terms and conditions of employment.

Employers should start discussions with current part-time commission only employees regarding the changes and the alternative arrangements available to them.

If you have any questions we recommend you contact the CCIWA Employee Relations Advice Centre on (08) 9365 7660 or [email protected]

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