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ANNUAL AND PERSONAL LEAVE CALCULATIONS FOR COMMISSION-ONLY EMPLOYEES

Under the Real Estate Industry Award 2020 (Award), the calculation of annual leave and personal leave for commission-only employees is based on their average weekly earnings over a specified period of time.

Annual Leave

Commission-only employees accrue annual leave entitlements at the rate of 4 weeks per year, based on their ordinary hours of work. To calculate the rate of pay for annual leave, the employer must determine the employee’s average weekly earnings over the previous 52 weeks (or the period of employment if shorter), including any commissions earned during that period. The employee is then paid at their ordinary rate of pay for the hours of annual leave taken.

Personal/Carer's Leave

Commission-only employees are entitled to 10 days of paid personal/carer’s leave per year, which accumulates progressively throughout the year. To calculate the rate of pay for personal/carer’s leave, the employer must determine the employee’s average weekly earnings over the previous 52 weeks (or the period of employment if shorter), including any commissions earned during that period. The employee is then paid at their ordinary rate of pay for the hours of personal/carer’s leave taken.

It is important to note that the employer must keep accurate records of the commission-only employee’s hours worked and any commissions earned, in order to calculate their entitlements correctly.

In summary, the calculation of annual leave and personal/carer’s leave for commission-only employees under the Award is based on their average weekly earnings over a specified period of time, including any commissions earned. The employer must keep accurate records of hours worked and commissions earned to calculate entitlements correctly.

Please contact REEFWA on (08) 9365 7510 or ReefWA@cciwa.com if you require assistance in managing your employee entitlements.

Written By Justin Lilleyman – Principal Consultant – Workplace Relations 

CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.

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