Outsourcing Overseas? Why Estate Agents Must Rethink Their Risk

Outsourcing administrative and support roles offshore has become increasingly common in the real estate industry. From trust accounting to prospecting and back-office administration, offshore teams can offer cost savings and efficiency.

But a recent Fair Work Commission (FWC) decision has changed the landscape and it should serve as a warning for estate agents.

The Case That Sparked Concern (Pascua v Doessel Group Pty Ltd)

A legal assistant in the Philippines was engaged by an Australian law firm as a “contractor.” However, because she worked fixed hours, was directly supervised, and functioned as part of the firm’s team, the FWC determined she was not a contractor at all, but an employee under Australian law.

The result? The firm was ordered to pay 15 weeks’ compensation, over $10,000, for unfair dismissal.

What This Means for Estate Agents

Many agencies rely on offshore staff for admin, lead generation, and even compliance support. However, if these workers are integrated into your operations like in-house employees, your agency may be exposed to employment law risks under the Fair Work Act, regardless of where the worker is physically located.

Entitlements such as unfair dismissal protections, minimum wages, leave, and superannuation could suddenly become liabilities for your agency.

Reducing the Risk

Estate principals and directors should urgently review how offshore staff are engaged. Labelling someone a “contractor” does not protect you if the working relationship looks more like employment.

One of the safest structures is to engage offshore staff through a reputable third-party provider. In this arrangement, the provider is the legal employer of the offshore worker, while your agency contracts with the provider as a client. This model:

• Adds a layer of protection for your business,

• Shifts the employment risk to the third-party provider, and

• Ensures compliance with Australian workplace laws.

Key Takeaway for Estate Agencies

Outsourcing can still be a smart, strategic move. But it must be structured correctly.

If your agency currently engages offshore staff directly, now is the time to review those arrangements and, if necessary, restructure them to avoid unnecessary exposure.