Re: Employed or Not!!


<richardhayes123@xxxxxxxxxxxxx> wrote in message
news:f49bdcea-f47a-4cf7-acfc-b5b6ef225ed6@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Person works as a salesperson, he is paid commission, but in order to
assist salesperson s/he is paid a minimum of £1,000 per month in lieu
of commissions by the firm.

Salesperson never reaches target on any given month and therefore is
paid a constant £1,000 for 18 months. Each time the adviser is paid by
cheque on the invoice that he has raised, with the wording on the
invoice as "Please find this invoice for a personal loan of one
thousand pounds" then further in it states "£1,000 due to ????? as a
loan to be repaid"

Salesperson has now been given their end of year commission
spread*** and is in the red to the tune of some £8,000. Salesman has
not been seen for a while and does not return phone calls etc.

Firm is taking action to sue and recover, is the salesperson employed
or otherwise?

If it is deemed that they are employed, can the firm still claim back
what has been overpaid in any case?

--------------------

In the event that the salesperson were to be indeed 'employed', then they
can't reclaim all of it - not without breaching the minumum wages
legislation.

The big question is: whether the salesperson is employed? Having
salespersons on a commission only basis is very common in many business
sectors and such salespersons are regarded as self employed. Commission is
often paid on an 'indemnity' basis where such commission is regarded as an
advance and is subject to being clawed back if the necessary business is not
completed.

In the OP's case, the unearned commission is repayable on demand. Of course
to do this, the salesperson first has to be tracked down. Whether this is
likely to cost more than is worth pursuing is another matter.


.

Loading