Can we employ commission only staff or is it illegal?

Dear Aunty B?,

Can we employ commission only staff in Australia? I rang Fair Work ?Australia about this only a month ago and was told that commission only?staff only exists within the Real Estate Industry (special provisions?that date back to the 70s).

All other Industries must provide minimum wage plus entitlements (sick leave, annual leave, etc). So assuming minimum wage is $2,000 per month, if a sales rep earns $3,000 in commissions then you pay him/her $3,000. If they only earn $1,500, then you have to top it up? by $500 to minimum wage. They also can take sick leave and holidays at the minimum wage rate.

After speaking to friends in various sales?orientated industries they have all expressed confusion with this. Many have straight commissions and have been doing this for years. My?comments about the advice I was given were argued with passion. Separate?to seeking legal advice about this, can anyone out there with some legal creds answer it?

Help wanted

Dear Help wanted,

Well one would think it would be legal – but it’s not. And I have that? on best authority. Peter Vitalie, our legal adviser says it is only?real estate agents and car salesmen that have special arrangements. Every employee that falls within the Federal system – and that’s everyone in Victoria – must receive at least the Federal minimum wage.

Any employee who is covered by an award classification must be paid the?minimum rate for that classification – something which is going to cause some angst for example in the finance industry where the most senior ?classification in the new Banking Finance and Insurance Industry Award? includes the following indicative list of positions:?? Indicative job list-branch manager, human resources or fraudulent ?relations manager, financial planners, information technology ?specialists, relationship manager, senior analyst, subject matter ?manager, divisional manager.

The industry description includes “broking, trading…valuation”. A lot of these employees in the big banks and institutions would already be ?award or agreement covered, but some small operators ?might get caught out.??? So, in short, if the commissions earned doesn’t add up to the minimum? rate, the employer has to make up the ?difference.

Good luck,?
Your Aunty B