Real Estate Fair Work
Case Study
Most employers are not HR professionals, so this can lead to them creating HR risk without them even knowing it.
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$5,000
$9
Less than $375
Case overview
A Melbourne-based real estate business in Hawthorn agreed to back-pay a 28-year-old Chinese worker $5,000 after the Fair Work Ombudsman found he was being paid just $9 per hour, or less than $375 per week, for administrative duties, contract drafting and assisting buyers.
The worker, who held a temporary graduate visa (subclass 485), was incorrectly classified as an intern by the employer. The Fair Work Ombudsman clarified that he was legally an employee and entitled to minimum wage requirements, even while on probation.
Following the investigation, the business received advice and assistance to better understand its workplace obligations. The case highlights that Australian minimum wage laws apply to all employees, including visa holders, and that employers must correctly classify workers and ensure they receive their legal entitlements.
Case facts
What they should have done
The company should have better understood employee classification and their rights under the relevant award and minimum entitlements included within the award and NES. How Happy HR would have helped this business avoid the fair work claim The Happy HR team would be able to outline basic employee entitlements. With our Premium Services, employers have a qualified HR consultant capable of completing Award Interpretations for each employee.
How Happy HR could have helped
Understand employee entitlements
Correct award interpretation
Get classification right
Happy HR ROI$5,000 back-pay = 8.4 years of Happy HR subscription
Got questions?
Frequently asked questions
What happened in this Real Estate Fair Work case study?
A Melbourne-based real estate business in Hawthorn was found to have underpaid a 28-year-old Chinese worker on a temporary graduate visa (subclass 485). The worker was paid just $9 per hour, or less than $375 per week, for administrative duties, contract drafting and assisting buyers. The business agreed to back-pay him $5,000 after the Fair Work Ombudsman intervened.
Why was the real estate employee underpaid?
The employer believed the worker was an intern and therefore did not need to receive the usual minimum wage. However, the Fair Work Ombudsman determined that he was an employee performing productive work and was entitled to minimum employment entitlements.
Are employees on probation or temporary visas entitled to minimum wages?
Yes. Employees are generally entitled to applicable minimum pay rates and workplace entitlements regardless of whether they are on probation or hold a temporary visa. Employers must comply with Australian workplace laws and cannot pay workers below their legal entitlements simply because of their visa status.
Can a real estate business classify an employee as an intern to pay them less?
No. A worker’s classification depends on the actual nature of the working arrangement, not simply the job title given by the employer. If someone is performing work as an employee, they must receive the applicable minimum wages and entitlements.
How could Happy HR help real estate businesses reduce HR risks?
Happy HR could provide qualified HR guidance, employee classification support and award interpretation to help real estate businesses understand their workplace obligations. This can help employers establish compliant employment arrangements, apply correct pay rates and reduce the risk of underpayments and costly Fair Work disputes.
See how Happy HR helps real estate businesses stay compliant and reduce HR risks
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