The Fair Work Commission (FWC) has announced changes to the way in which employees are paid for the excess time they spend travelling under the Real Estate Award.

Under the changes, employees are entitled to be paid for excess travel time from the employee’s home to a location that is further away than their employer’s business premises.

The additional travel time is treated as time worked and the employee must be paid their ordinary rates or overtime rates where applicable.

Employees who are required to use their own vehicle are also to be paid the applicable motor vehicle allowance.

The changes are in effect now.

According to an example on the Real Estate Employers Federation (REEF) website, the changes will mean that real estate employees who have to travel to a property that is further away than their place of work are entitled to excess travel time.

If an employee lives 10km from their office and it would normally take 20 minutes to undertake the journey, any time above that would mean they need to be paid excess travel time.

If the employee needs to go to a listing presentation first thing in the morning that will take her 45 minutes to get to, she is entitled to 25 minutes of excess travel time.

This 25 minutes must be treated as part of the employee’s 38-hour working week and paid by the employer.

If the employee is paid a motor vehicle allowance calculated on a per km basis, they will also be entitled to receive a motor vehicle allowance calculated on the excess travel distance of 15 kms.