The Ultimate Compliance Guide for the Real Estate Industry Award [2025 Update]

Most people assume payroll is simple. You hire staff, pay them their wages, and that’s it.

But in real estate, it’s not that straightforward.

The Real Estate Industry Award is one of the most difficult employment awards to navigate. The rules around full-time, part-time, and casual employees, commission-only structures, allowances, and overtime rates are incredibly specific – and constantly changing.

And if you get it wrong? Fair Work doesn’t care if you didn’t realise you were making a mistake. They won’t give you a warning. They’ll simply demand back pay, issue penalties, and, in some cases, take businesses to court.

Even if you’ve never had an issue before, that doesn’t mean you’re compliant. It just means no one has checked yet.

So, in this blog, I’m going to break it all down for you – how the Award works and how to make sure your payroll is 100% compliant.

So, who does this Award apply to?

This Award covers any employer in the real estate industry in respect to their employees engaged in the classifications listed in the Award.

The real estate industry, as defined under this Award, includes businesses that provide services related to:

• Sales, acquisitions, leasing, and management of residential, commercial, retail, industrial, hotel, recreational, and retirement properties.
• Business and hotel broking.
• Strata and community title management.
• Stock and station agency.
• Buyer’s agency.
• Real estate valuation.

In addition, the Award extends to labour-hire employers supplying workers to businesses in the real estate industry, as well as group training organisations placing trainees within the sector.

Who is NOT covered under this Award?

The Real Estate Industry Award 2020 does NOT cover:

• Employees explicitly excluded from award coverage under the Fair Work Act.
• Employees covered under a modern enterprise award or enterprise agreement.
• Employees covered by a State reference public sector modern award or State transitional award.
  
  

Key takeaway: If your business engages employees in any of the classifications under the Award, you are likely covered. However, if your employees fall under another industry-specific award or enterprise agreement, this Award may not apply. If you’re uncertain, it’s critical to get legal or payroll advice—because Fair Work won’t accept ignorance as an excuse.

This Award outlines strict rules on full-time, part-time, and casual employment, and you must classify your employees correctly from the start.

Full-Time Employees

A full-time employee under this Award is engaged to work an average of 38 ordinary hours per week. These employees are entitled to:

• A guaranteed weekly wage based on their classification level.
• Paid leave entitlements, including annual leave, personal/carer’s leave, and long service leave.
• Superannuation contributions in line with the Superannuation Guarantee.

Part-Time Employees

Part-time employees must:

• Work less than 38 hours per week on average.
• Receive pay and conditions on a pro-rata basis equivalent to full-time employees in the same role.
• Be paid at least 1/38th of the weekly minimum rate per hour for their classification.

Most importantly, the employer must provide written notice to a part-time employee at the start of employment, outlining their agreed-upon hours and conditions. Failure to do this can result in Fair Work determining that the employee should have been treated as full-time (which could mean back-paying annual leave, overtime, and more).

Casual Employees

Casual employment under this Award comes with strict requirements:

• The minimum engagement for a casual employee is 3 hours per shift—you cannot roster them for less than this.
• Casuals must receive a 25% casual loading on top of their base hourly rate.
• This casual loading replaces entitlements such as annual leave, paid sick leave, redundancy benefits, and notice of termination.
• If a casual employee works overtime, they must be paid at the appropriate overtime rates in the Award.

Important: Casual employees CANNOT be employed on a commission-only basis under this Award. If your business is engaging commission-based sales staff, they must be employed as full-time or part-time employees with a properly structured agreement.

Casual Conversion Rights

Casual employees have the right to request permanent employment under the Fair Work Act if they meet certain criteria. These rights exist to ensure that long-term casual employees who work regular, ongoing hours have a pathway to job security.

Employers must ensure they understand Sections 66A to 66MA of the Fair Work Act, which set out the rules for casual conversion.

Under the law, an employer must make a written offer to convert a casual employee to full-time or part-time if:

• The employee has worked for the business for at least 12 months, and
• During the last six months, they have worked a regular, consistent pattern of hours that could reasonably continue as a permanent role.

However, an employer is not required to offer conversion if there are reasonable business grounds to refuse. This could include:

• If the employee’s hours are expected to change significantly in the near future.
• If the role is expected to end within 12 months.
• If the conversion would require major changes to the way the business operates.

If an employer does not make an offer, they must provide a written explanation to the employee. Likewise, if an employee meets the eligibility criteria but has not received an offer, they have the right to request conversion in writing. The employer must respond within 21 days, either accepting or refusing the request with a clear reason.

Casual conversion is an area where many businesses make costly mistakes. Employers who ignore these rules or fail to follow proper procedures can face penalties from Fair Work. Ensuring compliance means not only understanding when offers must be made but also keeping accurate records of hours worked and all communication regarding conversion requests.

Back to top

This includes ordinary hours of work, rostered time off, and an employee’s right to disconnect outside of work hours.

Ordinary Hours of Work & Rostering

For employees covered under this Award, ordinary working hours are:

• 38 hours per week, which can be worked on any day of the week.
• Hours can be averaged over an 8-week period, but the average cannot exceed 38 hours per week.

Rostered Days Off (RDOs)

A Rostered Day Off (RDO) is a scheduled day off that forms part of an employee’s work pattern, allowing them to accumulate time off by working additional hours over a set period. This system is often used to balance workloads while ensuring employees receive their full entitlements to rest and recovery. 

Non-casual employees under this Award are entitled to either one and a half or two days off per week, which can be structured in different ways depending on the needs of the business and the employee. These can be taken as:

One Consecutive Period

The employee takes their full entitlement as one continuous period.

Example: An employee works Monday to Friday and has Saturday and Sunday off as their RDOs.

Two Separate Days

The employee takes their days off separately rather than in a continuous block.

Example: An employee works Monday, Tuesday, Thursday, Friday, and Saturday but has Wednesday and Sunday off.

Three Periods, Comprising One Full Day and Two Half Days

Instead of two full days off, the employee takes one full day and two half days.

Example: An employee has Wednesday off completely and takes Monday and Friday afternoons off as their half-days.

Additionally, employees must receive an unpaid meal break of at least 30 minutes after no more than five consecutive hours of work. However, if their shift is six hours or less, they may choose to work through their meal break—provided the employer agrees.

The Right to Disconnect

From 26 August 2024, non-small business employers must comply with the new Right to Disconnect provisions. Small businesses (those with fewer than 15 employees) have until 26 August 2025 to implement these changes.

Under these rules:

• Employees can refuse to monitor, read, or respond to work-related contact outside their working hours—unless refusing is deemed unreasonable.
• Employers cannot directly or indirectly prevent employees from exercising this right unless the contact is required by law or necessary due to an agreed standby arrangement.
• Disputes about an employee’s right to disconnect may be handled under the Fair Work dispute resolution process.

Employers should review their rostering and communication practices to ensure they align with these new requirements.

Employees are classified based on their level of responsibility, experience, and role within the business.

Minimum Weekly Rates for Full-Time Employees

Employees must be paid at least the minimum weekly wage for their classification. The Award sets out five classification levels, with pay increasing as responsibilities grow: 

• Real Estate Employee Level 1 (Associate Level) 
• Real Estate Employee Level 1 (Associate Level) 
• Real Estate Employee Level 2 (Representative Level
• Real Estate Employee Level 3 (Supervisory Level)
• Real Estate Employee Level 4 (In-Charge Level)

These rates do not apply to commission-only employees.

Junior Employee Pay Rates

Employees under 21 receive a percentage of the adult minimum wage:

• Under 19 years: 60% of the adult rate.
• At 19 years: 70% of the adult rate.
• At 20 years: 80% of the adult rate.
• At 21 years: 100% of the adult rate.

Download our eBook for a Pay Rate Cheat Sheet 

Commission, Bonuses & Incentive Payments

Employees can be paid a base wage plus commission, a bonus, or an incentive payment—but only if this is outlined in a written agreement between the employer and employee.

• Commission and incentive payments must be paid within 14 days of becoming payable.
• The entitlement is only payable once the employer has received cleared funds from their client.
• A written account of commissions or bonuses must be provided to employees.

Commission-Only Employment: What You Need to Know

Commission-only employment has strict eligibility rules and is only allowed for experienced, full-time employees who meet a specific income threshold. Employers must ensure they are not misclassifying employees under this arrangement.

Who Can Be a Commission-Only Employee?

To be employed solely on commission, an employee must:

• Be classified at Level 2 or higher in the Award.
• Hold a real estate licence or registration.
• Be at least 21 years old.
• Have at least 12 consecutive months of experience in sales or leasing within the last 3 years.
• Have earned at least 125% of their minimum classification rate in the past 12 months (Minimum Income Threshold Amount or MITA).

⚠ Casual, part-time, junior, and trainee employees CANNOT be employed on a commission-only basis.

Minimum Commission-Only Rate

Commission-only employees must be paid at least 31.5% of the employer’s gross commission. If multiple employees worked on a sale, their commission must be split based on their contribution, as outlined in a written agreement.

Review of Commission-Only Agreements

• Employers must review commission-only employees’ income annually.
• If their earnings fall below the MITA, their commission-only arrangement must end, and they must be placed on a wage.
• If they meet the MITA again later, they may reapply for a commission-only arrangement.

⚠ Commission-only employees do not receive base wages, paid leave, overtime, allowances, or penalty rates.

Back to top

These allowances ensure that employees are not left out of pocket for costs they incur while performing their duties.

Motor Vehicle Allowance

Real estate employees frequently use their own vehicles for work-related purposes, including attending property inspections, meeting clients, and conducting market appraisals. If an employer requires an employee to use their personal vehicle, they must reimburse them under one of the following methods:

• Standing Charge + Per Kilometre Rate – A weekly standing charge is paid along with a per-kilometre reimbursement based on the vehicle’s engine size and age. If the vehicle is over five years old, the standing charge is reduced.
• Lump Sum Payment – Instead of calculating expenses per kilometre, an employer and employee can agree on a fixed weekly amount based on the engine size of the vehicle.
• Per Kilometre Reimbursement – An alternative option allows employees to claim a set per-kilometre rate, up to a maximum weekly distance. Employees must maintain detailed records of their vehicle use, including odometer readings and trip logs.

When Motor Vehicle Allowances Do NOT Apply

Employees are not entitled to a motor vehicle allowance if:

• They are on unpaid leave or absent from work without employer consent.
• They lose their driver’s licence and cannot perform their role.
• Their vehicle is unavailable due to mechanical issues or an accident—unless they provide a replacement vehicle. 

If an employer provides a company vehicle, they must cover all expenses, including fuel, maintenance, and insurance. Employees must follow the employer’s policies regarding the use of the vehicle.

Motorcycle Allowance

If an employee is required to use a motor scooter or motorcycle for work purposes, they must be reimbursed at a set per-kilometre rate, up to a weekly maximum. Employees must maintain accurate records of their mileage and usage.

Mobile Phone Allowance

If an employer requires an employee to use their personal mobile phone for work, they must provide reimbursement. The amount of reimbursement depends on whether the phone is on a contract plan or a pre-paid service: 

• For contract plans, the employer must reimburse at least 50% of the monthly plan cost, up to a capped amount.
• For pre-paid services, the employer and employee must agree on a reasonable reimbursement amount in writing.

If an employee changes their phone plan, the allowance must be adjusted accordingly. The mobile phone allowance is paid throughout employment, except during any period of leave.

Uniform Allowance

If an employer requires employees to wear a uniform, they must either:

• Provide the uniform at no cost to the employee; or
• Reimburse the employee for purchasing the required uniform.

The uniform remains the property of the employer and must be returned upon termination of employment. Employees are responsible for maintaining, laundering, and dry-cleaning their uniforms.

Work-Related Travel & Expense Reimbursements

If an employee incurs expenses while performing work duties at the request of the employer, they must be fully reimbursed. These expenses may include:

• Public transport or taxi fares.
• Accommodation for overnight stays on work trips.
• Meals when required to travel outside usual working hours.

Where possible, employers should pay for these expenses upfront to prevent employees from having to cover costs out of pocket.

Excess Travel Time Compensation

If an employee is required to start or finish work at a location other than their usual workplace, they must be compensated for excess travel time beyond their normal commute. This additional time is treated as working time and must be paid at the applicable ordinary or overtime rates, depending on when the travel occurs. 

Employers and employees should ensure that all allowances and reimbursements are recorded in payroll systems and payslips as required under Fair Work Regulations.

Back to top

The rules around super guarantee payments, employee fund choices, and voluntary contributions are outlined in the Award and must be strictly followed.

Minimum Superannuation Contributions

Employers must contribute superannuation payments in line with the Superannuation Guarantee (SG), which is set by the Australian government.

• These contributions must be paid at least quarterly to a complying superannuation fund.
• Employers must ensure their chosen fund is able to accept new beneficiaries before making contributions.

Choosing a Superannuation Fund

Employees generally have the right to choose their own super fund. However, if an employee does not make a choice, the employer must:

1. Check with the ATO to see if the employee has an existing stapled superannuation fund.
2. If the employee does not have a stapled fund, contributions must be made to one of the default funds listed in the Award:
   • REI Super
   • CareSuper
   • Tasplan
   • Any super fund the employer was already contributing to before 12 September 2008 (as long as it meets MySuper requirements).

Employers must ensure they are paying into the correct fund—failure to do so may result in penalties.

Voluntary Employee Contributions

Employees may choose to make additional super contributions from their wages. If an employee provides written consent, the employer must:

• Deduct the agreed amount from their post-tax wages.
• Pay the contribution into the employee’s nominated fund within 28 days after the end of the month in which the deduction was made.

Superannuation for Commission-Only Employees

• Commission-only employees must receive super contributions based on their minimum wage classification or their average weekly earnings over the past 12 months—whichever is greater.
• Superannuation must still be paid even if an employee’s earnings fluctuate due to commission-based pay. 

Employers who fail to meet their superannuation obligations risk fines, penalties, and liability for unpaid contributions.

Back to top

Overtime & Penalty Rates: What You Need to Know

Overtime and penalty rates exist to ensure employees are fairly compensated when working outside standard hours. This includes work beyond the normal weekly hours or on rostered days off.

When Overtime Applies

Employees must be expressly directed by their employer to work beyond their standard rostered hours to qualify for overtime payments. If an employee works extra hours voluntarily, without employer instruction, it does not count as overtime.

Overtime Payment Rates

Overtime is paid at the following rates:

Note: Casual employees receive a 25% casual loading on top of the full-time and part-time overtime rates.

Time Off Instead of Payment for Overtime

Instead of receiving overtime pay, employees and employers can agree to time off in lieu (TOIL). This must be agreed upon in writing and must specify:

• The number of overtime hours worked and when.
• That the time off will be equal to the overtime worked (e.g., 2 hours of overtime = 2 hours TOIL).
• That employees can request payment instead of TOIL at any time.

TOIL must be taken within 6 months of the overtime being worked. If it is not taken within this period, the employer must pay the employee at the overtime rate for those hours.

⚠ Employers cannot pressure employees into choosing TOIL instead of overtime pay.

Stand-By & Call-Out Work

Employees in property management and strata/community title management roles may be required to be on standby or called out outside their normal hours. 

• Employers and employees must agree in writing on a fair compensation method.
• Compensation may be included in a higher salary package as long as it is clearly identified in the agreement.
• If no agreement is in place, any time spent on stand-by or call-out counts towards ordinary hours of work.

Without a written agreement, stand-by and call-out hours must be counted as working hours.

Back to top

Employers must ensure these entitlements are correctly recorded and paid.

Annual Leave Entitlements

Employees (excluding casuals) are entitled to 4 weeks of paid annual leave per year of service, as per the National Employment Standards (NES). 

• Annual leave accumulates progressively based on hours worked and carries over if unused.
• Employees who qualify as shiftworkers under the Award may be entitled to 5 weeks of annual leave per year.

Taking Annual Leave

Employers cannot unreasonably refuse an employee’s request to take their accrued annual leave. Employees are encouraged to take their leave within the anniversary year it accrues unless agreed otherwise.

Annual Leave Loading

Employees (excluding commission-only employees) receive a 17.5% leave loading on their base pay while on annual leave. 

• This does not apply when taking leave in advance.
• If an employee’s over-award payment results in a higher base rate than the minimum Award rate, they are entitled to receive the higher rate while on leave.

Directing Employees to Take Leave During Shutdowns

If a business plans to shut down temporarily, the employer may require employees to take annual leave.

• Employers must give at least 28 days written notice of a temporary shutdown period.
• Employees must take paid annual leave if directed, as long as they have accrued entitlement.
• If an employee does not have enough leave accrued, they can:
  • Take annual leave in advance if agreed in writing.
  • Take unpaid leave if agreed upon with the employer.

Annual Leave in Advance

Employers and employees may agree in writing to take annual leave before it has accrued.

The written agreement must specify:

• The amount of leave being taken in advance.

• The start date of the leave.

If an employee leaves the business before accruing the leave they have taken, the employer can deduct the value of the leave from the final pay.

Cashing Out Annual Leave

Employees may cash out some of their accrued annual leave, but only if:

• A written agreement is made for each instance of leave being cashed out.
• The employee retains at least 4 weeks of accrued leave after cashing out.
• A maximum of 2 weeks of leave can be cashed out in any 12-month period. 

⚠ Employers cannot pressure employees into cashing out leave, and the payment must be equal to what they would have earned had they taken the leave normally.

Excessive Leave Accruals

An excessive leave accrual occurs when an employee has more than 8 weeks of accrued annual leave.

Employer Direction to Take Leave

If no agreement is reached, the employer may direct the employee in writing to take annual leave. This direction must not:

• Reduce the employee’s leave balance below 6 weeks.

• Require the employee to take leave in blocks of less than one week.

• Be for leave starting in less than 8 weeks or more than 12 months from the direction date.

Employee Request to Take Excess Leave

If an employee has had excessive leave for more than 6 months, and no agreement is reached, they may force the employer to allow them to take leave. Employees can only request up to 4 weeks of leave (or 5 weeks for shiftworkers) per 12-month period.

Personal/Carer’s Leave & Compassionate Leave

Personal/carer’s leave allows employees to take paid time off when they are sick or need to care for an immediate family or household member.

• Full-time employees receive 10 days of paid personal/carer’s leave per year.
• Part-time employees receive leave on a pro-rata basis.
• Unused personal/carer’s leave accumulates and rolls over each year.

Employees can take 2 days of unpaid carer’s leave per occasion if they don’t have enough paid leave accrued.

Compassionate Leave

Employees are entitled to 2 days of compassionate leave when a close family member dies or suffers a life-threatening illness or injury. This leave is paid for full-time and part-time employees, but casual employees can take it as unpaid leave.

Parental Leave

Employees who have worked for their employer for at least 12 months are entitled to unpaid parental leave when having or adopting a child.

• Up to 12 months of unpaid leave, with the option to request an additional 12 months.
• Special maternity leave is available if a pregnancy ends due to miscarriage or medical complications.
• Partners may be entitled to unpaid concurrent leave at the same time as the primary caregiver.

Community Service Leave

Employees are entitled to unpaid leave to engage in voluntary emergency management activities or jury duty. 

• Employers must grant this leave as long as the activity is reasonably required.
• Employees on jury duty receive up to 10 days of paid leave, with the employer covering the difference between their normal wages and any jury duty pay.

Family & Domestic Violence Leave

Employees are entitled to 10 days of paid family and domestic violence leave per year.

• This leave applies to all employees, including casuals.
• Employers must keep confidential records of this leave and must not disclose any details on pay slips.
• Acceptable proof may include a police report, court document, support service letter, or statutory declaration.

Public Holidays

Employees are entitled to paid time off on public holidays unless required to work.

• If required to work, employees receive 200% of their base hourly rate for all hours worked.
• Casual employees receive a minimum of 3 hours’ pay at this penalty rate.
• Employers cannot unreasonably refuse an employee’s request not to work on a public holiday.

Back to top

Even small payroll mistakes can lead to back payments, penalties, and unnecessary stress. But with the right payroll system in place, you can avoid these risks entirely.

Pay Cat makes payroll compliance simple and hassle-free for real estate businesses by:

• Ensuring accurate Award interpretation and pay calculations.
• Preventing costly payroll errors that could lead to underpayments and fines.
• Automating payroll processes so payments, entitlements, and compliance updates are always handled correctly.
• Keeping you ahead of legislative changes so you are never caught off guard.

By using automated payroll software, you remove the guesswork from compliance. It ensures employees are paid correctly every time—no manual calculations, no last-minute adjustments, and no risk of falling behind on Award changes.

With Pay Cat, you can focus on running your business, knowing your payroll is handled accurately and efficiently.

Find out how we can help by booking a demo.