Below are two examples of arrangements where two or more employees work together to sell properties. These examples are provided for general guidance only. The Australian Fair Pay Commission in no way wishes to endorse or impede any particular remuneration arrangements that employers and employees may have at their places of work.
Example 1
Sally has been employed as a real estate salesperson at ABC Realty Pty Ltd for several years. Recently she agreed with her employer to be classified as a ‘Commission only real estate salesperson undertaking sales transactions involving an agency relationship’ and is now covered by the Pay Scale.
On 3 October 2007, Sally and all the other salespersons employed at ABC Realty sat down with their employer and negotiated an agreement to which they all agreed and signed.
The agreement set out, among other things, the method by which the 35% of the employer’s net commission would be divided where two or more employees were responsible for selling a property. The terms of the agreement dealing with this matter provided as follows:
Commission splits
Where two employees are responsible for selling a property, the minimum proportion of the 35% of the employer’s net commission (ENC) that each employee is to receive is to be calculated using the following formula:
|
|
|
Type of sales transaction |
|
|
|
Open |
Exclusive |
Auction |
|
Function of sales person |
List |
30% (10.5% of ENC) |
60% (21 % of ENC) |
70% (24.5% of ENC) |
|
Sell |
70% (24.5% of ENC) |
40% (14 % of ENC) |
30% (10.5% of ENC) |
Several weeks after making the agreement, Sally sources a client and lists a property. Sally passes management of the sale of the property on to another salesperson at ABC Realty, who subsequently sells the property at auction.
The sale of the property generates an employer’s net commission of $7,500. Accordingly, Sally is entitled to receive a commission payment of $1,837.50 (24.5% of $7,500) for listing a property that sold at auction.
Example 2
Peter, is employed as a ‘Commission only real estate salesperson undertaking sales transactions involving an agency relationship’ at XYZ Realty Pty Ltd and is covered by the Pay Scale.
Peter has sourced a client to XYZ Realty, however, he feels that his current family commitments will not leave him with enough time to also manage the completion of the sale.
Peter arranges a meeting with his employer and another employee who is covered by the Pay Scale, Donna. At the meeting, Peter, Donna and their employer agree, in writing, that if Donna manages the sale to completion, Peter and Donna shall each receive 17.5% of the employer’s net commission.
Several weeks later, Donna completes the sale of the property and generates an employer’s net commission of $8,400. Accordingly, Donna and Peter each receive a commission payment of $1,470 (17.5% of $8,400) from their employer.
Calculating rates of pay where two or more employees work together to sell a property