Award Update

Following the publication of the draft recommendations, the Commission called for comments, relating to the implementation of its preliminary decision to increase minimum wages for all classifications.

As there was not full agreement between all parties, the Commission facilitated a conciliation conference on the 3rd of November, which REEFWA attended.

The Fair Work Commission will publish its final decision in the next 2 weeks.

At the conference, the REEFs’ proposition to introduce broad banding classifications was met positively. Broad banding means, that regardless of whether the employee works in property management or sales, equivalent positions are classified in the same level.

As a part of the broad banding concept, the relativities between each of the levels were also agreed.

REEFWA still has concerns with increasing the Minimum Income Threshold for qualification for sales representatives to be employed as commission only from 110% to 125%. Action regarding this will be reviewed following the decision being published.

REEFWA were also successful in having the implementation of the wage increases delayed until 2nd April 2018.

As previously mentioned, once the final award is released REEFWA will be holding a number of training courses for members about how to implement the new award into your business.

The first one is planned for Wednesday 13 December 2017 – Details to come next week!

Should you have any questions regarding the above please feel free to contact

Peter Kuhne – REEFWA President – 08 9375 8822
Michael McGowan – REEFWA Executive Officer – 08 9365 7525

RECENT UNFAIR DISMISSAL DECISION HIGHLIGHTS THE PERILS OF ATTEMPTING TO USE REDUNDANCY AS A WAY TO DISMISS DIFFICULT EMPLOYEES

A common strategy used by employers in the real estate industry, particularly those who have less than fifteen employees because this means they are not required to pay redundancy pay, is to manufacture a redundancy situation and dismiss difficult or under-performing employees for that reason, rather than properly addressing issues of misconduct or under-performance.

A recent Fair Work Commission decision highlights the dangers of using such a strategy.

Background

The employee was employed by the employer in a position that in Western Australia, would be the equivalent of a Licensee in late 2015.

In March of this year, the employer had a discussion with the employee, where the employee was advised that his position was no longer required to be done by anyone because the employer had decided to take over the duties of licensee itself.  However, rather than end the employment relationship, the employer offered the employee a position as a property sales associate or alternatively, the employee could choose to be engaged on a contract for service (contractor) relationship.

Whilst this was not part of the unfair dismissal application decision, please note that neither of the above alternatives are appropriate here in Western Australia and should not be considered by REEFWA members.  A property sales associate position would be too junior for an employee who is currently engaged as a licensee and the property sales person position would be more appropriate.

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Award Update

REEFWA would like to provide you with an update on the review of the Real Estate Industry Award 2010, following from the preliminary decision of the Fair Work Commission in July this year.

As stated in our previous member updates, REEFWA was disappointed in the preliminary decision of the Fair Work Commission to amend the Award by:

  • Increasing the minimum wage for Sales representatives
  • Increasing the Minimum Income Threshold for qualification for sales representatives to be employed as commission only from 110% to 125%

Following publication of the draft recommendations, the Commission has called for comments relating to the implementation of its preliminary decision to increase minimum wages for all classifications. As full agreement between all parties could not be reached, the Commission will be facilitating a conciliation conference on November 3rd to hopefully arrive at an agreed outcome.

REEFWA will make all members aware of the outcomes of these meetings.

Regardless of the outcomes there will be changes to the Real Estate award and REEFWA will provide numerous briefings for members to further understand the implications and how to implement them in your business.

Should you have any questions regarding the above please feel free to contact

Peter Kuhne – REEFWA President – 08 9375 8822
Michael McGowan – REEFWA Executive Officer – 08 9365 7525

Recently the Fair Work Commission handed down increases to the minimum award rates of pay which will affect Real Estate Agents in the National system.

The award rates of pay for National System employers will increase by 3.3% effective from the first pay period commencing on or after 1 July 2017.

This increase will affect employees covered by the Real Estate Industry Award and the Clerks – Private Sector Award.

The following table shows the new rates of pay applicable to employees covered by the Real Estate Industry Award.

REAL ESTATE INDUSTRY AWARD
MODERN AWARD CLASSIFICATION AWARD RATES
Weekly (effective from the first pay period commencing on or after 1 July 2017)
Property Sales Associate – first 6 months $694.90
Property Sales Associate – after 6 months $719.20
Property Sales Representative $736.70
Property Sales Supervisor $847.40
Property Management Associate $742.90
Property Management Representative $785.00
Property Management Supervisor $901.40
Strata/Community Title Management Associate $742.90
Strata/Community Title Management Representative $785.00
Strata/Community Title Management Supervisor $901.40
CLERKS – PRIVATE SECTOR AWARD
MODERN AWARD CLASSIFICATION AWARD RATES
  Weekly

(effective from the first pay period commencing on or after 1 July 2017)

Level 1 – Year 1 $738.80
Level 1 – Year 2 $775.40
Level 1 – Year 3 $799.65
Level 2 – Year 1 $809.15
Level 2 – Year 2 $824.10
Level 3 $854.60
Level 4 $897.40
Level 5 $933.80