Award Anniversary

 

Last April, the new Industry Award was released and a number of changes were made to how agents should be paid if they are employed under the award. In particular there were big changes made to the award regarding commission only agents, from eligibility through to how often a review should be conducted.

In case you are not aware, the changes for those commission only agents are as follows:

An introduction of a new four level classification for agents working within an agency:

1. Real Estate Employee Level 1 (Associate Level) classification which covers employees previously classified as property sales, management and strata/community title management associates. Their weekly wage is:

• for first 12 months: $728.20
• after first 12 months: $768.60

2. Real Estate Employee Level 2 (Representative Level) classification which covers employees previously classified as property sales, management and strata/community title management representatives. Their weekly wage is $809.10.

3. Real Estate Employee Level 3 (Supervisory Level) classification which covers employees previously classified as property sales, management and strata/community title management supervisors. Their weekly wage is $890.60.

4. Real Estate Employee Level 4 (In-charge Level) classification which can include licensees in charge and agency managers. Their weekly wage is $930.50.

Specifically, the Act states the following:

To be eligible for commission only employment employees:

• need to be a Real Estate Employee Level 2 or above
• need to have worked in property sales or commercial, industrial or retail leasing as a Real Estate Employee Level 2 or as a licensed real estate agent for at least twelve (12) consecutive months over the previous three (3) years
• need to meet the new minimum income threshold amount rules.

Minimum income threshold amount rules:

The Award now states that employees engaged on a commission only basis must, in any twelve (12) month period over the past three (3) years, have been paid an annual amount (including commission or bonus payments) that is at least equal to:

• the minimum annual rate for their classification under the award, plus
• an extra 25%.

This amount does not include superannuation payments.

Review of Commission only:

Commission only arrangements need to be reviewed every 12 months and need to meet the new minimum income threshold amount rules. In particular, employees engaged on a commission only basis:

• before 2 April 2018 – need to have their arrangement reviewed by 2 April 2019
• on or after 2 April 2018 – need to have their arrangement reviewed no later than twelve (12) months after the arrangement started.

Employment arrangements that do not meet the minimum income threshold amount rules have no legal effect and cannot be enforced.

If you are the Licensee-In-Charge of an agency, you should be ensuring that you are conducting these reviews now as the initial twelve months since the new Award implementation has passed.