Commission-based employees Commission-based employees are generally paid a fee or percentage for how much they sell, not for the period of time that they work. Commission-based employees must always receive at least the minimum entitlements contained in an award or agreement that covers their employment. This means the commission paid must be at least as much as they would have earned if they were paid under the award or agreement for every hour worked. From 1 January 2010, modern awards cover most workplaces and set out new minimum pay rates. Employers must ensure that their commission pay structure at least meets the minimum entitlements under the modern award. Transitional arrangements in most modern awards (the model transitional provisions) mean that the new minimum wage rates (including loadings and penalties) in most cases do not commence until the first full pay period on or after 1 July 2010. These transitional arrangements also provide that the changes to wage rates in modern awards in most cases can be progressively implemented over a four year period by reference to pre-modern award and modern award entitlements. Under the model transitional provisions, minimum wage rates in modern awards (including any increases from Fair Work Australia’s Annual Wage Reviews) apply in full from the first full pay period on or after 1 July 2014. Note: Some modern awards have specific commission based pay structures within them. For example, see the Real Estate Industry Award 2010 [MA000106]. Commission-based employees may also have leave entitlements under the National Employment Standards (NES). The NES replaced the non-pay rate provisions of the Australian Fair Pay and Conditions Standard (the Standard) from 1 January 2010. From fair work Australia website
