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Hi from what have I read it seems ok for employers to recoup the job keeper payment from commission

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Newbie

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Hi from what have I read it seems ok for Real Estate employers to recoup the job keeper payments from commission payments to sales staff hence the feeling that the employer is being paid twice as they generally keep 50% of the commission to begin with.

Does the employer legally have to recoup the job keeper payment from real estate sales employees when commission payments are made?

Does the emplyer have to return those recouped jobkeeper payments to the ATO or do they keep the funds?

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Community Support

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Hi @LAGM,

 

Thanks for getting in touch with us!

 

An employer can claim for the JobKeeper subsidy on behalf of their staff as long as they meet the eligibility criteria

 

As to whether or not the "employer can legally recoup the JobKeeper payment from real estate sales employees when commission payments are made" is a question you will need to discuss with Fair Work. They can advise you of what the employer/employees legal rights are. 

6 REPLIES 6
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Most helpful response

Community Support

Replies 5

Hi @LAGM,

 

Thanks for getting in touch with us!

 

An employer can claim for the JobKeeper subsidy on behalf of their staff as long as they meet the eligibility criteria

 

As to whether or not the "employer can legally recoup the JobKeeper payment from real estate sales employees when commission payments are made" is a question you will need to discuss with Fair Work. They can advise you of what the employer/employees legal rights are. 

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Initiate

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Like you, Fair Work aren't suppling an answer either. We (Real estate agents) are not getting answers from the ATO or from Fair work. How do you come to the conclusion that it is ok for employers to recoup job keeper payments from commissions? You state "Recoup"? Employers aren't recouping anything, they have already been paid by the jobkeeper subsidy. Double dipping is what they are doing.

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Community Support

Replies 2

Hi @LAGM

 

The jobkeeper amount of $1500 includes gross salary, wages, commission, bonus payments and allowances. The employer cannot be paid less than $1500 per fortnight. Employers cannot pay their employees less than $1500 per fortnight and keep the difference.

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Initiate

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Hi Lisa. Your answer doesn't address my question.

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Community Support

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Hi @GoingBroke

 

We understand where you are coming from, but all we (the ATO) can confirm is that to be able to claim JobKeeper from us, the eligible employer needs to ensure that their eligible employee is paid the minimum required amount in the JobKeeper fortnight. The minimum required amount ranges from $650 to $1,500 depending on the JobKeeper fortnight and applicable rate.

 

As we advised in our last response, JobKeeper can be used to subsidise a range of payment types including bonuses and commissions. This means that if an eligible employer pays an eligible employee a commission of at least $1,500 in say JobKeeper fortnight 13 (14 September to 27 September 2020), they can claim JobKeeper from us from 1 October to 14 October 2020.

 

The employer also needs to ensure that they are paying the employee in line with the applicable award, workplace agreement or contract requirements, hence why our first response also suggested that Fair Work be contacted.

 

If you have a situation where you believe the employer isn't adhering to their JobKeeper requirements, you can make a tip-off. Refer to our website for more information. If you don't think they're adhering to their workplace requirements, we suggest you go to Fair Work.

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Newbie

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It’s completely ridiculous and no one seems to care. 

The agencies are basically getting their staff for free, then they are getting another $750 per week from each of their agents - so this is profit for them! And most of the time this is after they have already taken a % of what the agents have earnt.

 

This isn’t helping the employees or keeping them in a job. It’s allowing the employee to rack up debit and eventually be let go.

It may be legal but for the agencies that are making their staff pay this back, but it’s completely immoral and disgraceful.