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Ben Jones
Ben Jones, UK Lawyer
Category: UK Employment Law
Satisfied Customers: 44880
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Ben. I'm Linda and have started a recruitment company and I'm looking at empl

Customer Question

Hi Ben. I'm Linda and have started a recruitment company and I'm looking at employing a business development manager on a commission basis at the moment and would like advice on paper work and commission paying structure pleas
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Submitted: 1 year ago.
Category: UK Employment Law
Expert:  Ben Jones replied 1 year ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. What specifically would you like to know about this situation please?
Customer: replied 1 year ago.
Hi Ben. I'm Linda and have started a recruitment company and I'm looking at employing a business development manager on a commission basis at the moment and would like advice on paper work and commission paying structure please
Expert:  Ben Jones replied 1 year ago.
Thanks I saw that but can you please provide more details of exactly what you need as your query is too general at present?
Customer: replied 1 year ago.
I would like to employ a business development manager on commission basis only. I would like to know what the best legal % rate to offer him. As this is all new to me I would like to do right by him and what the law states. I'm unsure of what legal employment contract to give him and application form.
Expert:  Ben Jones replied 1 year ago.
Will this person be working as self employed?
Customer: replied 1 year ago.
Probably the best route to go as this is what we did discuss. Would you think self employed would be the best way rather than commission. I would probably need to go in more detail when we meet again.
Expert:  Ben Jones replied 1 year ago.
The main issue is that if you are employing them as an employee you would have an obligation to ensure they get paid the National Minimum Wage of £6.50 an hour. So the danger of employing someone on a commission only basis as an employee is that you must ensure the payments they get reflect this minimum requirement. You do not want the person to end up working hours and get paid an amount which when calculated over these hours does not meet this. In addition, you would have to pay them holiday pay, sick pay and also redundancy after 2 years’ service. If they were self employed then there is no minimum wage requirement and no holidays, sick pay, etc. You can basically employ them as you wish and pay them what you want as long as you are both agreeable to it. So I cannot comment on what rate of commission you should pay them as that would depend on the industry rates and what someone in their position would normally get – this is for you to work out as you work in the industry, a lawyer cannot really get involved with that. Also you must offer a rate which they are happy to accept, there is no point offering them something which is unrealistic for someone in their position. Finally, when you decide whether to employ them as employee or self employed, you should bear in mind that establishing someone’s employment status is not an easy task and there is no single test that can be used. It is usually irrelevant what a person is labelled as by their employer because their status would depend on the overall employment relationship, not on what they referred as. Following years of case law, a number of established factors have generally been accepted as a reasonably accurate way of establishing whether someone is an employee or self employed. The courts would still use some of these to get an overall picture of the employment relationship and determine the person's employment status. You may use the Government’s Employment Status Indicator tool to find out what their status is most likely to be: https://www.gov.uk/employment-status-indicator By following the link and answering the questions you may get a good idea of what their employment status is, although it is worth noting that these are still only an indication and only a court can provide a definitive answer. They are nevertheless useful to guide you. I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Expert:  Ben Jones replied 1 year ago.
Hello, I see you have read my response to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? If your query has been dealt with please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. If you need further help please get back to me on here and I will assist as best as I can. Thank you.

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