If your business has employees who do commercial travelling, advertising sales, or merchandising work, whether on the road or in locations outside your office, or you’re a labour hire business providing employees for any of these roles, then you’ll need to understand and comply with the Commercial Sales Award [MA000083].
From 1 July 2025, the Fair Work Commission (FWC) increased modern award wages by 3.5%. This means employers covered by the Commercial Sales Award 2020 should review classifications, allowances, and penalty rates to ensure their employees get the right pay and entitlements.
In this guide, we explain who’s covered by the Commercial Sales Award, how to classify employees under the Award, and how pay, leave, and penalty rules apply.
Commercial Sales Award: A Quick Summary for Busy Managers
Pressed for time? Check out this section for the essentials:
The Commercial Sales Award [MA000083] sets minimum employment standards and pay rates for commercial travellers, merchandisers, and advertising sales representatives.
To stay compliant, managers must consider:
- Award coverage: Whether the employee is covered by the Commercial Sales Award as opposed to, say, the Clerks—Private Sector Award [insert link], depending on the employee’s actual duties.
- Employee type: Whether the employee works on a full-time, part-time, or casual basis.
- Employee classification: Under the Award, employees are classified into 3 groups: commercial travellers/advertising sales representatives, merchandisers, or probationary travellers (employed for under 3 months).
- Hours and timing of work: Whether the employee works on holidays or weekends vs. standard workdays, or does overtime.
Watch out for these compliance trip-ups:
- Labelling employees as “sales managers” or “account managers” when they actually spend substantial time in the field rather than in the office, yet are treated as office-based and therefore excluded from the Award.
- Paying annual leave for commission-based employees using standard leave loading instead of the Award’s commission-specific calculation rules, and using flat salaries without clear set-off clauses or regular better off overall testing (BOOT).
Coming up: Award dates and deadlines you need to know
| Date | What’s happening? |
|---|---|
| March to June 2026 | The FWC carries out its annual review of the National Minimum Wage and all modern award rates, including the Commercial Sales Award. |
| Early June 2026 | The FWC usually announces its decision on the percentage increase for the new financial year in early June. |
| 1 July 2026 | The new, increased award rates for commercial travellers, advertising sales representatives, and merchandisers are effective from the first full pay period on or after 1 July 2026. |
Award Basics
The Commercial Sales Award is a modern national workplace award. It’s made by the FWC under the Commonwealth Fair Work Act 2009, which is one of Australia’s most important employment laws.
The Award sets out the minimum employment conditions for employees working as commercial travellers, merchandisers, and advertising sales representatives in Australia. It specifies pay rates, penalty and overtime rates, and leave entitlements.
Employees covered by the Award receive minimum employment conditions under the National Employment Standards (NES) as well as the Award. The NES provides 11 basic entitlements, such as maximum weekly hours, annual leave, and other leave entitlements.
Who’s covered under the Commercial Sales Award?
The Commercial Sales Award covers businesses whose employees work as:
- Commercial travellers
- Advertising sales representatives
- Merchandisers
- Probationary travellers (commercial travellers or advertising sales representatives with under 3 months’ experience in the role)
The Award also covers labour-hire businesses that hire out employees for commercial-travelling, advertising sales, or merchandising.
Who isn’t covered under the Commercial Sales Award?
This Award doesn’t apply to commercial travellers, merchandisers, or advertising sales representatives if their employer is covered by another modern award that specifically classifies those roles.
This includes:
- Clerks—Private Sector Award [insert link]
- Contact Call Centres Award [insert link]
- Graphic Arts, Printing and Publishing Award [insert link]
The Commercial Sales Award also doesn’t apply to:
- Employees excluded from Award coverage by the Fair Work Act 2009.
- Employees covered by a modern enterprise award or instrument, or a state reference public sector modern award or transitional award.
Coverage self-check: Does the Commercial Sales Award apply?
To see if the Commercial Sales Award fits your situation, check these statements:
- I operate a business (e.g., a media or publishing group, a food and beverage company, or an event, exhibition, and sponsorship business) and employ staff to work in commercial travelling, advertising sales, and merchandising roles.
- The employee works away from, or is substantially away from, the office as a commercial traveller, advertising sales representative, or merchandiser.
- The employee isn’t a managerial employee genuinely covered by a higher-level classification under another modern award.
- The employee isn’t covered by a more specific award that applies to their primary duties (e.g., the Clerks—Private Sector Award).
- The employee isn’t covered by an enterprise agreement (EA). If they are, the EA generally sets pay and conditions, subject to the BOOT and interaction with the underlying award.
If these statements apply, the employee is likely covered by the Commercial Sales Award.
Pro Tip
Use the Fair Work Award Finder to confirm coverage based on your business type and your employees’ actual tasks.
Determining Commercial Sales Award [MA000083] Requirements
Rules on pay, hours, breaks, overtime, and other employee entitlements vary depending on the employment type and the Award’s classifications.
Employment types
There are 3 categories the Award groups employees into: full-time, part-time, and casual.
Full-time employees
Full-time employees are expected to work an average of 38 ordinary hours per week, up to a maximum of 152 hours over a 28-day period. These hours can be worked on any day during the week, but mustn’t exceed 10 hours on any day.
Part-time employees
Part-time employees have reasonably predictable hours and work less than 38 hours per week. They get the same entitlements as full-time employees, but on a pro rata basis. Under the Award, they must also be engaged for at least 3 consecutive hours per shift.
Casual employees
Casual employees work on an intermittent or irregular basis. They’re entitled to a higher hourly rate than full-time or part-time employees, which includes a 25% casual loading as compensation for not receiving certain entitlements available to permanent employees.
On each occasion they work, they must be employed and paid for at least 2 hours.
This Might Interest You
Find out more about the different categories of employees in our Australian employment law guide.
Commercial Sales Award classifications
The Award groups employees in the commercial sales industry into 3 classifications:
- Probationary Travellers
- Merchandisers
- Commercial Travellers/Advertising Sales Representatives
These groups are defined as follows:
| Commercial sales industry classification | Typical role & duties |
|---|---|
| Probationary Travellers | A commercial traveller or advertising sales representative who has worked for their employer for less than 3 months. |
| Merchandisers | A merchandiser works:
|
| Commercial Travellers/Advertising Sales Representatives | A commercial traveller works:
An advertising sales representative works:
|
Commercial Sales Award Pay Rates and Entitlements Overview
The Commercial Sales Award sets minimum pay rates, penalty and overtime rates, and rules for breaks, allowances, and employee entitlements. Let’s look at each one.
Minimum base rates
For adult commercial sales employees, minimum rates are determined by the Award’s classifications.
| Commercial sales industry employee classification | Minimum adult weekly rate (full-time employees) | Minimum adult hourly rate (for full-time, part-time, and casual employees) |
|---|---|---|
| Probationary Travellers | $964.71 | $25.39 |
| Merchandisers | $996.70 | $26.23 |
| Commercial Travellers/Advertising Sales Representatives | $1,071.90 | $28.21 |
For junior rates and rules for trainees or employees receiving a supported wage, refer to the Award.
Did You Know?
The Fair Work Ombudsman provides advice and enforces compliance with the country’s workplace laws. If you’d like to see current pay rates for employees, you can find them in the Fair Work Ombudsman’s pay and wages or the Fair Work Commission’s Modern Awards Pay Database.
Penalty rates
Penalty rates are payable to full-time, part-time, and casual employees when they work particular times or days.
| All classifications | Penalty rate payable (% of the minimum hourly rate) |
|---|---|
| Full-time and part-time employees |
|
| Casual employees |
|
Overtime rules and rates
Overtime is paid when employees work outside their ordinary hours.
The following overtime rates are payable under the Award:
| Employee type | What’s the rule | Overtime rate payable (% of the minimum hourly rate) |
|---|---|---|
| Full-time employees | Entitled to overtime when they work:
| 150% |
| Part-time and casual employees | Entitled to overtime when they work:
| Part-time employees: 150% Casual employees: 175% |
Breaks
There are no explicit break specifications under the Award; employees are simply entitled to regular breaks of reasonable duration for normal meals on each work day.
Allowances
The Award covers expense-related allowances only. These are reimbursements for particular work-related costs. There are no wage-related allowances to contend with.
Some examples of expense-related allowances contained in the Award are as follows:
| Allowance | When it applies | Amount |
|---|---|---|
| Weekend allowance | Employee is required to be away from home or office on any weekend. | $64.80 per weekend |
| Living away from home allowance | Employee is required to be away from home for 2 or more consecutive nights during any week. | $81.59 per week |
| Vehicle allowance | Employee uses their own vehicle for work. | Car: $0.98 per kilometre Motorcycle: $0.33 per kilometre |
| Training program | Employee is required to complete any instruction or training course. | All fees and expenses related to the instruction or training course. |
For details on other allowances, such as vehicle modification, phone, and accommodation, check the Award.
Leave entitlements
Most leave comes from the NES and applies regardless of the award an employee is covered by. The Commercial Sales Award then adds more rules, particularly about annual leave.
Annual leave
Here are the fundamentals you should know about annual leave under the Award:
- Full-time and part-time employees accrue 4 weeks of paid annual leave per year (pro rata for part-time employees). However, casual employees don’t accrue annual leave.
- Annual leave is paid at a 17.5% leave loading for employees who don’t receive commission. Those who receive commission get the higher of 17.5% leave loading or the average of their commission payments over the previous 12 months.
- Employers can reasonably direct employees to take annual leave (e.g., during shutdowns), provided this complies with the NES.
- Employees can take leave as it accrues, but taking leave in advance, splitting leave, or cashing out up to 2 weeks of leave per year requires approval and minimum balances to be maintained.
Did You Know?
Under the Commercial Sales Award, commission is recognised as a sales-based incentive for personally generating orders or business. While the Award doesn’t set the commission structure, it does affect leave pay.
Other NES leave
Other types of leave covered by both the NES and the Award include:
- Personal/carer’s leave
- Compassionate leave
- Parental leave and related entitlements
- Community service leave
- Family and domestic violence leave
Pro Tip
Use the Fair Work Ombudsman’s Leave Calculator to work out how much leave applies to your role.
How To Determine Commercial Sales Award Coverage
To avoid underpaying staff and having to hand out back pay later on, you need to check your employees are covered by the Award. Let’s work through a Commercial Sales Award example.
Commercial Sales Award [MA000083]: A practical, real-world example
Emma is a 27-year-old full-time commercial traveller employed by a food manufacturing business who:
- Has worked as a commercial traveller for 6 months, using her own car for work.
- Usually works an average of 7.6 hours per day from Monday to Thursday, taking approximately 24 minutes for an unpaid lunch break each day.
- Works extended hours on Fridays, from 7:30 am to 6:00 pm for a total of 10 hours, plus a 30-minute unpaid meal break.
- Works mostly away from her employer’s place of business, spending minimal time in the office.
- Sells or takes orders, promotes products for sale, and negotiates shelf placement, as well as setting up display units and gondola ends at customers’ premises.
- Is paid a base hourly rate plus commission on any sales.
How the Award applies:
- Coverage: Emma is covered under the Commercial Sales Award because she’s engaged as a commercial traveller and her primary duties involve selling, taking orders, and promoting products for sale away from her employer’s place of business.
- Classification and base rate: Emma’s duties and 6 months’ experience as a commercial traveller align with a Commercial Traveller classification under the Award, with a minimum rate of $1,071.90 per week or $28.21 per hour.
- Allowances: As Emma uses her own car for work, she’s entitled to a vehicle allowance of $0.98 per kilometre travelled. For example, if she travelled 650 kilometres during a particular week for work, she’d be entitled to a payment of $637 for that week.
- Overtime: Emma is entitled to 10 hours of overtime every 28 days based on the 2.5 extra hours of work she does every Friday. This is 150% of $28.21 per hour for 10 hours, totalling $423.15 per 28-day period (4 working weeks).
- Breaks: Under the Award, Emma is entitled to regular breaks of reasonable duration for normal meals on each work day, so her daily 24-minute lunch break qualifies.
Common scenarios and compliance tips
Apply these key checks to similar situations you may come across:
1. A beverage company hires an “account manager” who works mostly on the road, visiting bottle shops and hospitality venues, taking orders, negotiating pricing, and maintaining client relationships
Key checks:
- Confirm whether the employee is working away from or substantially away from the employer’s place of business, which points towards coverage under the Commercial Sales Award.
- Look past the employee’s job title of “account manager” and assess whether their primary duties align with those of a commercial traveller (selling goods for resale or use in production).
- Ensure any salary or commission arrangement for the employee properly offsets minimum rates, overtime, and leave entitlements, with regular BOOT checks.
2. A media company employs advertising sales staff selling advertising space and event sponsorships, with some days spent visiting clients and other days spent in the office preparing proposals and managing accounts
Key checks:
- Confirm the employee primarily works away from their employer’s place of business, and not merely occasionally out of the office.
- Assess whether the employee’s role is better covered by the Commercial Sales Award or another Award (e.g., the Clerks—Private Sector Award), based on where they do most of their work and the tasks they perform.
- Apply the Award’s provisions on minimum payment rates, ensuring the employee wouldn’t be disadvantaged in weeks with low commission (if applicable).
- Ensure annual leave is paid in accordance with the Award’s special rules for commission-based employees, rather than assuming standard leave loading applies.
- Monitor hours worked outside ordinary hours for potential overtime, particularly during campaign launches or events.
3. A food supplier engages merchandisers to visit supermarkets and convenience stores to set up displays, replenish stock, rotate products, and reorder goods, doing some minor sales as well
Key checks:
- Confirm that the employee’s primary duties fit the merchandiser definition under the Award (i.e., promotion, re-ordering, and display work away from the employer’s place of business).
- Ensure employees aren’t incorrectly classified as commercial travellers rather than merchandisers if selling is only a minor part of their work.
- Check compliance with Award provisions on travel time, vehicle use, and expense reimbursement, where applicable.
- If paying a flat rate, confirm that it validly offsets Award entitlements and remains compliant as Award rates increase.
Common employer mistakes to avoid
To ensure compliance and fair practice, avoid these common errors:
- Assuming coverage of employees under the Commercial Sales Award by focusing on their job titles, such as “sales manager” or “account manager,” rather than whether they’re predominantly field-based as opposed to office-based.
- Treating employees as managers (i.e., Award-free) based on their seniority or autonomy, even though they lack genuine managerial authority.
- Miscalculating annual leave and other entitlements for commission-based employees, with employers incorrectly applying standard leave loading instead of the Award’s commission-specific rules.
- Assuming “above-award” salaries absorb all Award entitlements without clear contractual set-off clauses or regular BOOT checks, resulting in cumulative underpayments over time.
Glossary
Above-award salary
A salary paid above the minimum rate set by the Award, intended to compensate for one or more Award entitlements, such as overtime, penalty rates, or allowances.
BOOT (better off overall test)
A legal test used by the Fair Work Commission to ensure employees are better off under an enterprise agreement than they would be under the relevant modern award.
Casual employees
An employee engaged with no firm advance commitment to ongoing work, who works irregular hours and is paid a casual loading instead of receiving paid leave and certain other entitlements.
Ordinary hours
An employee’s standard working hours before overtime or penalty rates apply. Under the Commercial Sales Award, this averages 38 hours per week for full-time employees.
Resources and Links
- Commercial Sales Award [MA000083]: A Fair Work Ombudsman document summarising who is and isn’t covered under the Australian Commercial Sales Award.
- Commercial Sales Award 2020: The full Fair Work Ombudsman document detailing all pay rates, conditions, and classifications under the Commercial Sales Award.
- Commercial Sales Award 2010: The original Commercial Sales Award 2010 from the Fair Work Commission.
- Downloadable Pay Guide: Downloadable Commercial Sales Award pay guide from the Fair Work Ombudsman.
FAQs
What is the Commercial Sales Award 2020?
The Commercial Sales Award 2020 is a modern Australian workplace award that sets out the minimum conditions for employees working as commercial travellers, advertising sales representatives, or merchandisers. It includes details on pay rates, working hours, leave entitlements, and more.
Who is eligible for a commercial sales Award?
The Commercial Sales Award covers employees who are commercial travellers, advertising sales representatives, and merchandisers, as well as their employers. It also covers labour hire businesses and the employees they hire out for these roles.
Who is not covered by a commercial sales award?
The Commercial Sales Award doesn’t apply where another modern award specifically covers the employee’s role, or where the employee is excluded from award coverage under the Fair Work Act 2009. It also doesn’t apply to employees (or employers) covered by an enterprise award or agreement, or by a state reference public sector modern or transitional award.
Disclaimer
The information provided here is a summary only and does not constitute legal advice. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Laws change frequently, and outcomes may vary depending on your business circumstances. We recommend consulting a qualified employment lawyer before making decisions related to workforce management. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.