FWO Orders Back Pay After Commission-only Work Arrangement Found Unlawful

The Fair Work Ombudsman has recovered over $10 000 in wages for a real estate agent in Melbourne who was underpaid as a result of an unlawful commission-only employment arrangement.

The directors of Melbourne Real Estate in Dandenong admitted to unlawfully requiring the agent, a recent immigrant from Sri Lanka, to perform four weeks of unpaid work as part of a purported ‘training program’ as well as failing to ensure the agent received at least minimum wage during his employment. Under the Real Estate Industry Award 2010 an employee must be demonstrated to have earned more than the minimum wage applicable under the Award in any 12-month period covering the preceding five years in order for a commission-only arrangement to apply.

To avoid litigation the directors, John and Le Hoa Wysham of Aspendale, have opted to enter into an Enforceable Undertaking with the FWO requiring them to reimburse $10 300 to the agent in addition to a number of other undertakings to ensure future compliance with legal obligations under the Fair Work Act.

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