Commission only employees

Commission only employees

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Does anyone have some practical / legal advice for calculating deductions for days off sick / holiday pay for commission only employees.
G B

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By carnmores
09th Jan 2006 17:06

i disagree with Richard
all workers are entitled to holiday pay see the EU working time directive

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By Richard Willis
09th Jan 2006 16:18

An Oxymoron, surely?!
Hi G B

The phrase 'commission only employees' must surely be an oxymoron. If they are employed at all, then they will be entitled to the Statutory Minimum Wage at the very least.

If they are TRUELY paid only on commission, then a) They are not strictly employees at all, and b) Why would you need to make any deduction for holiday or sick pay? They can only presumably earn commission while they are at work, can they not? If they are absent, they are not selling anything on which to earn commission!

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David Kirk profile image
By David Kirk
11th Jan 2006 16:00

Yes they can be employees
It is certainly not the case that anyone on commission only cannot be an employee. Whether someone shares in the results of the business he does is only one of many tests of employment/self-employment, and not a very important one at that.

If however they are not actually obliged to do any work at all, then they will be self-employed and there is a possibility that the holiday pay legislation will not apply either.

David Kirk, MA, FCA, ATII
[email protected]

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