Fair Work Centre — For Employers
Commission structures, contractor disputes and restraint clauses on departure create distinct employment law risk for real estate and property management businesses. Get advice built for your agency.
The Problem
Whether an agent is genuinely an employee or a contractor is scrutinised closely under the Fair Work Act 2009, and commission-only arrangements must still meet minimum entitlement guarantees enforced by the Fair Work Ombudsman.
Treating a genuinely controlled, business-integrated agent as a contractor to avoid minimum entitlements is one of the most common and costly misclassification risks in real estate.
Even where pay is commission-based, employees are still entitled to minimum guarantees under the applicable award — a bad month for sales doesn’t remove this obligation.
Poorly drafted non-compete and non-solicitation clauses offer little real protection when a top-performing agent leaves and takes a client list with them.
Performance issues tied to sales targets need a fair, documented process — target-based dismissals without proper process are a common source of unfair dismissal claims.
How We Help
Fair Work Centre helps real estate and property management businesses manage agent classification, commission structure compliance and enforceable exit clauses.
Our advice reflects current Fair Work Commission guidance on commission-based employment and restraint of trade enforceability.
How It Works
Call 1300 161 828 or book a free initial advice call about your business.
We review your specific classification, contracts and compliance risk.
Get a clear compliance plan built for your business and workforce.
A short advice call now can prevent a misclassified agent or unenforceable restraint costing you later.
Membership
Common Questions
It depends on the substance of the relationship — the level of control the agency exercises, whether the agent works exclusively for you, and who bears the financial risk — not the label used in the agreement.
Employees on commission structures are generally still entitled to a minimum wage guarantee under the applicable award, regardless of sales performance in a given period.
They can be, but only to the extent reasonably necessary to protect a legitimate business interest like client relationships — overly broad clauses are commonly narrowed or struck down.
Yes, but it needs to follow a fair process — clear expectations, a genuine opportunity to improve, and proper documentation — rather than an immediate dismissal based on one bad period.
This is exactly what a properly drafted restraint and confidentiality clause is designed to address — without one, protecting client relationships becomes far harder.
Property managers are typically salaried or wage-based rather than commission-based, and are generally covered by the Real Estate Industry Award with standard entitlements applying.
No. Fair Work Centre is an independent private advisory service for employers. We are not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.
Fair Work Centre is an independent private organisation providing advisory services to employers only. It is not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.
Speak to an Employment Lawyer at Fair Work Centre
To change or request cancellation of your Client Membership, please email us with your request at: info@fairworkcentre.com.au.
Refer to our Terms of Service for changes or cancellation requests.
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