Your Commission Structure Is Probably Illegal—And Your Employer Knows It
While retail giants scramble to fix billion-dollar wage theft, tech sales reps are sitting on the same time bomb.
Woolworths and Coles are writing cheques for $1 billion in underpayment remediation. Four class actions are tearing apart "contractor" arrangements at marketing and sales companies. Optus just copped a $100 million penalty.
Here's what no one in tech sales is talking about: your commission structure probably has the same problem.
That "contractor" SDR role? The one where you're casual but work set hours, use company systems, and have a manager dictating your activity? That's sham contracting. The Fair Work Ombudsman is hunting these arrangements right now, and they're finding them everywhere.
Your uncapped OTE that somehow never pays out because "territory adjustments" killed your pipeline mid-quarter? That's wage theft with extra steps. The legal test isn't whether your contract says "commission-based." It's whether you're actually being paid for the work you've done.
The enterprise account manager role that's been "independent contractor" for three years while you work 9-to-5 and report to a VP? You're an employee. Always were. And when the class action hits, your employer will claim they had no idea while their lawyers count the zeros.
Here's the tell: if retail and telco couldn't get away with this stuff, why do you think your Series B SaaS company can? Because they put "startup" in the deck?
The underpayment wave is coming for tech sales. Not because regulators suddenly care about your OTE. Because the same dodgy employment structures that worked in retail are copy-pasted into sales orgs everywhere. Casual contracts for permanent roles. Contractor classifications for employees. Commission clawbacks that wouldn't survive a Fair Work review.
If your offer letter looks sketchy, it probably is. And unlike Woolworths, your startup can't write a $500 million remediation cheque. They'll just shut down the ANZ entity and restructure.
Check your employment status. Actually read your commission terms. And if HR says "don't worry about it," start worrying about it.
The bill's coming. Make sure it's not addressed to you.