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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 55715
Experience:  32 years of experience practicing law and a businessman.
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Hi, Im going to let go an independent contractor tomorrow

Resolved Question:

Hi, I'm going to let go an independent contractor tomorrow (no contract in place just a verbal agreement).   He is a sales person and he sold around 6 jobs that we have not started. The customer contracts are in signed and I wonder if I need to pay him for these jobs even though I'm letting him go. Your thoughts?
Submitted: 8 years ago.
Category: Business Law
Expert:  Richard replied 8 years ago.
Hi there. If he was the procuring cause of these jobs, even though they have not yet started, these are signed binding contracts and you should pay him.   If you do not, he would be in a good position to bring a suit against you and would most likely prevail.

I hope this has given you the guidance you were seeking. I wish you the best of luck!

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Customer: replied 8 years ago.

I can't pay him the verbal agreed amount since I have to bring others to finish the project managment of the job. Does that account for anything?

 

Expert:  Richard replied 8 years ago.
Yes, you would be entitled to reduce his compensation by the amount you would have to pay the others to finish the jobs.   I thought, based on the narrative, he was simply the sales person and you were talking about commissions. But, yes, if his compensation was only partly earned and others need to finish, then you should "net" pay him.   Thank you for providing me the additional info so I could answer more specifically!

I hope this has given you the guidance you were seeking. I wish you the best of luck!

If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button NOW, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Customer: replied 8 years ago.

Since there is not agreement in place, I don't feel like I need to provide him a reason or an excuse but to just let him know we no longer need his services and that I intend to compensate him fairly for the remaining jobs. Do you have any other advice for me regarding discontinuing his services?

Expert:  Richard replied 8 years ago.
First of all, let me apologize for not having all the facts initially. All the additional info you typed did not show up on our initial screen. Sorry about that.

Now, to your question...what you suggest doing is exactly right. There is no reason to over-explain. I applaud you for your fairness and even-handedness. Your employees and customers must value the way you do business!
I hope this has given you the guidance you were seeking. I wish you the best of luck!

If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button NOW, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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