A general overview of the Real Estate Award
The Real Estate Industry Award 2020 applies to various roles within the real estate sector, including employees involved in property sales, property management, and administrative support roles. This award sets the minimum standards for pay, working conditions, and entitlements, ensuring that real estate professionals receive fair compensation for their expertise and contributions to the industry.
This article provides an overview of the significant elements of the Real Estate Industry Award, including details of coverage under the award, different types of employment, rostering and working hours, minimum wage requirements, applicable allowances, superannuation obligations, and leave entitlements. Understanding these provisions is essential for maintaining compliance with legal requirements and fostering fair and consistent employment practices within your real estate business.
For in-depth details on specific topics, links throughout this article will guide you to comprehensive resources.
Note: The information provided in this article is accurate as of 03/09/2024. As award conditions and rates are subject to change, please refer to the latest version of the Real Estate Industry Award for the most current information.
Real Estate Award coverage
The Real Estate Industry Award applies to various roles within the private real estate sector. You can find basic coverage information below:
Who's covered
This award covers a broad range of real estate roles, including:
- Real estate agents: Professionals involved in buying, selling, and leasing residential, commercial, and industrial properties.
- Property managers: Those who manage rental properties, handle tenant relations, collect rent, and coordinate maintenance.
- Real estate salespersons: Employees focused on property sales, conducting showings, negotiations, and closing deals.
- Business brokers: Experts who assist in the sale and acquisition of businesses.
- Hotel brokers: Specialists in managing the sale and purchase of hotel properties.
- Strata managers: Individuals overseeing the management of strata-titled properties, ensuring compliance with regulations.
- Buyers' agents: Representatives who help clients find, evaluate, and negotiate property purchases.
- Property valuers: Professionals conducting property appraisals for various purposes, including sales, purchases, and financing.
This award also covers on-hire employees, such as temporary real estate agents and contract property managers, as well as trainees gaining practical experience in real estate settings.
Who isn't covered
High-level executives, employees covered under bespoke enterprise agreements, state public sector workers, and those whose duties align more closely with other industry-specific awards, such as construction or financial services, don't fall under the Real Estate Industry Award.
Practical example: James works as a real estate salesperson at a local real estate agency. His primary duties include conducting property showings, negotiating sales, and closing deals. In addition, he occasionally assists with administrative tasks, such as updating property listings and handling client enquiries. Although James spends about 15% of his time on these administrative duties, his major responsibilities involve property sales and client interactions. Therefore, James falls under the Real Estate Industry Award.
Employment types under the Real Estate Award
The Real Estate Award provides different employment arrangements to accommodate various types of employees:
- Full-time employees: benefit from consistent schedules, job security, and stability.
- Part-time employees: enjoy flexibility with reduced hours compared to full-time employees, tailored to their contract agreements.
- Casual employees: have no guaranteed hours and work on an as-needed basis, receiving a higher hourly rate because of the lack of job security.
Real Estate Award ordinary hours
The Real Estate Award sets clear parameters for an employee's ordinary hours to ensure fairness:
- Full-time: Employees work 38 hours per week, with the option to average these hours over an eight-week period.
- Part-time: Employees work fewer than 38 hours per week, with hours agreed upon in writing.
- Casual: Shifts require a minimum engagement of three hours, with total hours up to 38 per week.
- On-hire workers: Adhere to the hours outlined in their hire agency contracts.
- Trainees: Follow the ordinary hours relevant to their training agreements, either full-time or part-time.
Rostering under the Real Estate Award
Full-time and part-time employees should have regular, predictable hours agreed upon in writing before they start work. While the award doesn't specify an exact notice period for roster changes, it's advisable to provide at least seven days' notice, aligning with best practices observed in other awards and Fair Work guidelines.
The award encourages flexibility, allowing employers and employees to mutually agree on adjustments to work hours to accommodate both operational requirements and personal needs. Employees can also request flexible working arrangements, which employers must consider according to the National Employment Standards (NES), with refusals only on reasonable business grounds.
Breaks and rest periods
Breaks are essential to maintaining employee well-being and productivity. The Real Estate Industry Award mandates that no employee work more than five hours without taking an unpaid meal break of at least 30 minutes. If an employee's shift is six hours or less, they may choose to skip the meal break with the employer's consent. Meal breaks don't count as time worked.
Learn more about Real Estate Industry employment types, ordinary hours, and rostering
Real Estate Award pay rates
The Real Estate Industry Award defines minimum wage rates to ensure fair compensation across various job categories. For instance, a Level 1 real estate employee (Associate Level) earns $932.20 per week in their first 12 months, increasing to $981.40 thereafter. More experienced employees, such as those at the Supervisory Level (Level 3), receive $1,135.50 per week. Junior employees under 21 years of age receive a percentage of the adult rate, which varies by age. Casual employees receive an additional 25% loading on their hourly rate to account for the lack of guaranteed work hours.
Employers must follow specific guidelines for wage payments, ensuring they pay employees weekly, fortnightly, or monthly, as agreed. Upon termination, employers must provide detailed payslips and pay all outstanding wages and entitlements within seven days, in accordance with the Fair Work Act 2009.
See full list of Real Estate Award pay rates
Real Estate Award Allowances
The Real Estate Industry Award includes various allowances to compensate employees for additional responsibilities and work-related expenses. For example, employees using their own vehicle for work-related travel have a right to the award's applicable motor vehicle allowance, which provides $0.98 per kilometre. This allowance helps cover costs associated with fuel and excess time spent travelling to client meetings, property inspections, or other work-related activities outside of the employer's business premises.
The variety of allowances stipulated in the award receive regular updates to reflect changes in cost-of-living and other economic factors.
Real Estate Award superannuation
The Real Estate Industry Award specifies superannuation obligations for employers, requiring them to contribute 11.5% of an employee's ordinary time earnings to a superannuation fund as of July 2024. Employees aged 18 and over who earn more than $450 per month are eligible, including full-time, part-time, and casual workers.
Employees can choose their superannuation fund, and if they don't, employers must check for a stapled fund through the Australian Taxation Office (ATO). Employers must continue making contributions during paid leave and for up to 52 weeks for employees on workers' compensation. Additionally, employees may make voluntary contributions to their superannuation fund, which employers must process within 28 days of the month when the deductions occurred.
Real Estate Award overtime
The Real Estate Industry Award provides fair compensation for employees working beyond their standard hours, focusing on standard overtime provisions rather than on penalty rates for weekends or after-hours work.
Overtime pay applies under specific conditions. Full-time and part-time employees earn overtime pay when they work extra hours at the direct instruction of their employer. Employers must calculate each day of overtime independently. On non-rostered days or half days off, full-time and part-time employees earn overtime at 100% of the minimum hourly rate, while casual employees receive 125%. For work on rostered days off, overtime rates increase to 150% for the first two hours and 200% for any additional hours. Casual employees don't have specific overtime rates for rostered days off.
Employees can't claim overtime pay for additional hours worked on their own initiative without specific direction from their employer.
Time off instead of overtime pay
Employees and employers may agree in writing to time off instead of overtime pay. The time off must match the overtime hours worked and the employee should take this time off within six months. If they don't take the time off within this period, the employer must pay it out at the applicable overtime rate.
Standby and call-out compensation
For roles like property management or strata and community title management, when an employee must be on standby or called out outside of their ordinary hours, the employer and employee must agree on the compensation details in writing. In some cases, a salary above the minimum wage may already include compensation for these standby and call-out duties, as long as the employment agreement specifies this.
Learn more about Real Estate Award overtime
Real Estate Award leave entitlements and public holidays
The Real Estate Industry Award provides comprehensive guidelines for annual leave and public holiday entitlements, ensuring employees receive fair treatment and compensation.
Annual leave
Full-time employees have a right to four weeks of paid annual leave per year, while part-time employees accrue leave based on their hours worked. Employers must add a 17.5% annual leave loading to an employee's regular wages during annual leave.
Employers can require employees to take leave during a shutdown period with 28 days' notice. Employees may take leave in advance or cash out a maximum of two weeks annually with a written agreement. If leave accrues to more than eight weeks, employers and employees should work together to reduce it, but employers can direct employees to take leave if they're unable to reach an agreement.
Other types of leave
Full-time employees have a right to 10 days of paid personal/carer’s leave annually for personal illness or to care for a sick family member. Compassionate leave allows for two days of paid leave per occasion for a death or life-threatening illness in the immediate family. Parental leave provides up to 12 months of unpaid leave, with an option to request an additional 12 months. Community service leave is available for emergency duties or jury duty, typically unpaid. Employees also have a right to 10 days of paid leave annually for family and domestic violence.
Public holidays
Employees (excluding casuals) have the right to a paid day off on public holidays recognised under the NES, such as Christmas Day and Australia Day. Employers may request employees to work on public holidays if reasonable, and employees can refuse based on reasonable grounds. Employees and employers can come to an agreement to substitute another day for a public holiday.
Employees required to work on public holidays must be engaged for at least three hours and paid at double the minimum hourly rate during this time. States and territories may declare additional public holidays, which employers must observe.
Key considerations for the Real Estate Award
Understanding the specific provisions of the Real Estate Industry Award is essential for maintaining compliance and ensuring fair treatment of employees. Here are some important nuances to keep in mind:
- Award coverage: The Real Estate Industry Award applies to a wide range of roles within the real estate sector, including real estate agents, property managers, and strata managers. However, it doesn't cover high-level executives, state public sector employees, or those covered by bespoke enterprise agreements.
Why it matters: Misclassifying employees under this award when they should be under a different award or agreement can lead to non-compliance issues and potential legal disputes. Accurate classification is necessary for ensuring proper wage calculations and adherence to employment standards.
- No penalty rates: Unlike many other industry awards, the Real Estate Award doesn't include penalty rates for work performed on weekends or outside standard hours. Employers must compensate employees for working during these times, but there are no additional rates for after-hours work unless otherwise specified in a specific employment contract.
Why it matters: Employers need to be aware that weekend or after-hours work doesn’t automatically require extra compensation beyond standard overtime rates. Misunderstanding this could result in overpayments or underpayments, affecting both compliance and payroll accuracy.
- Special rules for commission, bonus, and incentive payments: The award outlines specific rules for handling commission, bonus, and incentive payments. Employers must clearly define these payments in a written agreement, specifying the conditions and timing of payment.
Why it matters: Failure to clearly document commission, bonus, or incentive agreements can lead to disputes, misunderstandings, and non-compliance with the award. Employers should ensure all agreements are in writing and adhere strictly to the award’s guidelines to avoid potential conflicts.
- Minimum engagement for public holidays: The Real Estate Award mandates that employees working on public holidays must be engaged for at least three hours. Additionally, hours worked immediately before or after a part-day public holiday that form part of one continuous shift count toward this minimum engagement period.
Why it matters: Misunderstanding these requirements can lead to incorrect compensation for public holiday work. Ensuring adherence to the minimum engagement period helps maintain compliance and fair pay practices.
Simplify Real Estate Award compliance with Rippling
Navigating Real Estate Industry Award compliance can be challenging due to the diverse roles, complex pay arrangements, and unique commission structures within the sector. Rippling’s unified platform streamlines this process, enabling your real estate business to maintain compliance while efficiently managing the specific requirements of the award. Key features include:
Comprehensive coverage and compliance tools
Rippling’s platform offers employee classification and real-time compliance alerts, keeping you updated with any changes in award coverage. With detailed reporting, audit support, and customisable templates, you can ensure that your business remains compliant with all facets of the Real Estate Award.
Streamlined rostering and leave management
With features like time and attendance tracking and leave management, Rippling ensures that all processes align with the award’s stipulations, reducing manual work and consequent errors, and enhancing operational efficiency.
Simplified payroll, overtime, and superannuation
Rippling simplifies the complexities of payroll, including overtime and superannuation compliance. The platform automatically adjusts pay, overtime, and penalties according to award requirements, and calculates superannuation contributions accurately.
Real-time insights and integration
Rippling’s seamless integration with existing systems ensures accurate financial management, offering peace of mind and operational flow improvements.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
