Real Estate Industry Award coverage: A comprehensive guide
The Real Estate Industry Award 2020 is specifically created to ensure that employees in the real estate sector receive fair wages and appropriate working conditions. This award caters to the unique demands of roles such as property management, real estate sales, and administrative support, ensuring these professionals are adequately compensated and safeguarded. For companies in the real estate industry, it’s imperative to understand and comply with this award to maintain legal compliance and promote a fair workplace.
This guide provides a thorough exploration of the Real Estate Industry Award, offering businesses the information needed to navigate its complexities and ensure compliance.
Who’s covered under the Real Estate Industry Award?
The Real Estate Industry Award encompasses a wide array of roles within the real estate sector. Here’s an overview of who falls under this award:
Private-sector real estate employees
This award applies to employees across Australia engaged in real estate agency services. These professionals are essential to the industry, handling tasks such as sales, acquisitions, leasing, and property management. Examples include:
- Real estate agents: Professionals involved in selling, leasing, and managing residential, commercial, and industrial properties.
- Property managers: Those responsible for managing rental properties, including tenant relations, rent collection, and maintenance coordination.
- Real estate salespersons: Employees focusing on the sales aspect, conducting property showings, negotiations, and finalising deals.
- Business brokers: Specialists who assist in the sale and acquisition of businesses.
- Hotel brokers: Professionals handling the sale and purchase of hotel properties.
- Strata managers: Those overseeing the management of strata-titled properties, ensuring compliance with regulations and facilitating meetings and maintenance.
- Stock agents: Professionals who manage the buying and selling of livestock.
- Station agents: Those involved in rural property transactions and agricultural services.
- Buyers agents: Experts who represent buyers in finding, evaluating, and negotiating the purchase of properties.
- Property valuers: Professionals who conduct property appraisals for sale, purchase, and financing purposes.
On-hire employees
This award covers any employer supplying labour on an on-hire basis within the real estate industry, and the on-hire employees engaged in performing work for businesses in this sector. These employees are classified under the Real Estate Industry Award while they’re engaged in relevant work. Examples include:
- Temporary real estate agents: Agents hired through a staffing agency to assist with short-term projects or busy periods.
- Contract property managers: Property managers provided by an on-hire company to fill in during staff shortages or special projects.
Trainees employed by group training employers
Employers that provide group training services for trainees in the real estate industry are covered by this award, along with the trainees engaged by group training services to perform work at real estate locations. These trainees gain practical experience while receiving formal education. Examples include:
- Trainee real estate agents: Individuals gaining hands-on experience in real estate sales and property management while pursuing their qualifications.
- Trainee property valuers: Trainees working alongside experienced valuers to learn property appraisal skills while completing their studies.
Who isn’t covered under the Real Estate Industry Award?
It’s important to understand the exclusions and limitations of the Real Estate Industry Award. Here are details of those who fall outside this award's coverage:
- Employees excluded from modern awards: Certain individuals are excluded from award coverage by the Fair Work Act. This typically includes high-level executives or senior managers who fall outside the scope of modern awards.
- Employees under modern enterprise awards or instruments: Employees who are covered by modern enterprise awards or enterprise instruments aren’t included in the Real Estate Industry Award. For instance, staff working under a bespoke enterprise agreement tailored to a large property development company are excluded from this award.
- State reference public sector employees: Employees governed by state-specific public sector awards or transitional awards are also excluded. For example, professionals working in state government property management under a state-specific public sector award aren’t covered by the Real Estate Industry Award
If an employer is covered by more than one award, the most appropriate award classification applies to the employee's usual duties and work environment. For instance, a property valuer primarily working in a state government agency might fall under the State Government Agencies Award 2020 rather than the Real Estate Industry Award, as the former is more relevant to their specific work setting and responsibilities.
Real Estate Award coverage: Practical example
John is a full-time real estate agent at a large real estate agency. His primary responsibilities include selling and leasing residential properties, conducting property showings, negotiating sales and lease agreements, and managing client relationships. Occasionally, John also provides interior design advice to clients, helping them stage their homes for sale to increase marketability and value.
Analysis
John’s role is primarily focused on real estate sales and leasing, which are central to the operations of the real estate agency and are clearly covered by the Real Estate Industry Award. However, his occasional tasks of providing interior design advice fall outside the typical scope of the Real Estate Industry Award. Despite this overlap, John’s core responsibilities align closely with the classifications under the Real Estate Industry Award, ensuring that his position is covered by this award.
Steps to determine coverage
To determine whether an employee’s covered by the Real Estate Industry Award, you can follow this structured process:
- Identify responsibilities: Start by documenting the primary responsibilities and daily tasks of the employee.
- Compare with awards: Review the definitions and classifications in the Real Estate Industry Award and other relevant awards to find the best match.
- Predominant Function Test: Assess whether the main duties of the employee's role fit with those usually covered by the Real Estate Industry Award.
- Check exclusions: Examine the exclusions listed in the Real Estate Industry Award to ensure the employee’s role isn’t covered by another specific award, such as the State Government Agencies Award or the Clerks - Private Sector Award.
- Review other employment agreements: Revise any enterprise agreements or specific contracts that might influence award coverage.
- Consult experts: Should you be uncertain about which award applies, it’s a good idea to seek advice from industrial relations or legal professionals.
- Maintain thorough records: Keep detailed records of your analysis, the awards considered, any advice received, and the rationale for your final decision to ensure compliance and clarity.
Distinctions within Real Estate Award coverage
Understanding the nuances and distinctions within the Real Estate Industry Award is essential for employers to ensure proper compliance. Here are some specific aspects related to coverage that might surprise or catch employers off guard:
Inclusion of business and hotel broking
Employers might assume this award only applies to traditional real estate roles. However, employees who broker sales of businesses and hotels are also covered. This distinction can catch employers off guard, leading them to misclassify employees involved in these specific activities.
Inclusion of stock agents
Employers might be surprised to learn that stock agents who handle the buying and selling of livestock are covered under the Real Estate Industry Award. If employers assume these roles fall under a different industry award, such as those specific to agricultural services, this can lead to misclassification.
Exclusion for certain roles
The award explicitly excludes employees covered by other specific awards, such as those under modern enterprise awards, state reference public sector awards, or transitional awards. Employers need to be aware that not all employees in a real estate business are covered by this award. For example, administrative support staff might be covered under the Clerks—Private Sector Award. Misunderstanding these exclusions can lead to the wrong application of award conditions, potentially resulting in non-compliance.
Simplifying Real Estate Industry Award coverage compliance with Rippling
Managing the intricacies of award coverage demands precise attention to ensure both compliance and the fair treatment of employees. Rippling’s all-in-one platform delivers a robust set of tools to simplify and streamline your business's adherence to award coverage regulations. Key features include:
- Automated employee classification: Automatically classify employees according to the appropriate awards.
- Real-time compliance alerts: Stay updated with any changes in award coverage.
- Detailed reporting: Generate reports to ensure compliance and maintain accurate records.
- Custom templates: Use pre-built and customisable templates for various awards.
- Audit support: Access historical data and audit trails to support compliance audits.
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.
