The Real Estate Industry Award 2020 [MA000106] has been updated to clarify when employees are considered to be working and therefore entitled to be paid motor vehicle allowances.
Effective from 1 March 2024, the Award’s existing motor vehicle allowance clause (clause 17.2) now includes additional wording to refer to a newly inserted clause 17.11.
This new clause clarifies that when an employee is required to commence work at a property where they are providing services described in the award and within the classification definitions, they are deemed to be ‘working’ while travelling and are entitled to payment for that work at least at the minimum award rate.
The payment will be for time reasonably spent by the employee travelling to or from the location which is in excess of the time normally spent by the employee in travelling between the employee’s usual residence and the employer’s business or office premises, on each occasion.
They are also entitled to be paid the motor vehicle allowance in clause 17.2 of the award, as reimbursement for the use of their vehicle, if they are using their own vehicle.
Fair Work Commission Vice President Asbury has stated that the variations “do no more than clarify the relevant existing provisions” and therefore businesses need to be mindful that if they have not been paying the travel allowance in this way previously, they may need to consider reviewing their wage records to rectify any past non-compliance.
For assistance with wage compliance checks and for advice regarding awards, contact our specialist team at Focus HR.