Have you checked your Employees Contracts lately?

As an employer it is important to consider reviewing and updating contracts of employment to ensure protection of commercial interests, reflect the changing circumstances of the employment and comply with evolving common law decisions regulating the law of employment.

Changes to the Modern Award

Over the past 5 years there have been a number of changes to the Real Estate Industry Award 2020 (Award) which have impacted on terms and conditions of employment that were previously applicable.

For example , the Award provisions previously permitted that commission-only employees could be paid their NES entitlements (e.g. annual leave and personal/carers leave) as part of their “all-up” commission rate.

Following a Full Bench decision in 2014, the Commission changed the Award provisions so that where a commission-only employee is employed on an all-up arrangement, the employee is entitled to be paid their NES entitlements when the leave is actually taken (rather than in advance as part of the commission payment).

Risks of Non-Compliance

If an employer fails to reflect relevant Award or legislative changes with their employee’s contracts of employment, non-compliance could result in significant financial implications for the company relating to underpayments. In addition, the company could be subject to legal proceedings resulting in possible penalty breaches of the Fair Work Act 2009 (up to $13,320 per contravention for an individual/director and $66,600 per contravention for the company).

What to do?

REEFWA continually reviews and amends the contracts of employment that are available to members, reflecting any Award amendments, legislative changes or significant legal decisions.

As the employment relationship is fluid and subject to significant changes over time, Employers should seriously consider reviewing and updating contracts of employment to ensure they are meeting all legislative and legal requirements in order to avoid possible financial ramifications and costly legal proceedings.

In order to assist you in reviewing and updating your employment contracts please contact REEFWA via email: ReefWA@cciwa.com or on (08) 9365 7510, where you will be put in touch with an experienced legal adviser who can discuss various options available to you.

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