100% Commission

Author
Discussion

Muska

Original Poster:

1,125 posts

183 months

Monday 3rd October 2011
quotequote all
My other half works for a Gas & Elec broker which sells to commercial only. Her pay is 100% commission based with different sales paying out monthly, quarterly, 6 monthly or even yearly.

My question comes down to holiday pay. She has had a few weeks off this year when we've been on holiday etc yet has never received any holiday pay, only what she had already made in sales, so of course when she is not there she is not generating any new sales and ends up being a little behind again in pay terms.

I also explained to her the other night that should we want a baby in the future although she may get maternity leave she would not receive any maternity pay, only what she had already earned from sales made.

Am I seeing this situation right? To my mind she does not get holiday pay, only takes unpaid leave and I have a feeling the company are not doing something right here. Can anyone advise if they are not fulfilling their role as employer and if I should look into this further? I have no idea where to start if I'm honest apart from trying to get the jist of things from here.

Thanks in advance.


escargot

17,111 posts

218 months

Monday 3rd October 2011
quotequote all
What are the terms of her engagement with this company?

Geoffers

889 posts

254 months

Monday 3rd October 2011
quotequote all
I was under the impression that most of these sorts of companies take the last three months pay figures, and then work out your weekly average, then apply that to your holiday pay.
I remember working for a utility company many yrs bk, commision based only, and this is how they sorted holiday/sick pay.

Muska

Original Poster:

1,125 posts

183 months

Monday 3rd October 2011
quotequote all
Thanks you both for the replies. I have a copy of her contract coming home with her tonight.

andy-xr

13,204 posts

205 months

Monday 3rd October 2011
quotequote all
Who's paying HMRC? That might solve a few issues??

escargot

17,111 posts

218 months

Monday 3rd October 2011
quotequote all
andy-xr said:
Who's paying HMRC? That might solve a few issues??
Aye, it'll probably then highlight a load of new ones hehe

It's the first point that needs establishing though.

Muska

Original Poster:

1,125 posts

183 months

Monday 3rd October 2011
quotequote all
You mean for tax & NI contributions...? As she is aware her 'employer' All deductions are made each month for her.

Eric Mc

122,165 posts

266 months

Tuesday 4th October 2011
quotequote all
Does she receive a wages payslip each month?

Does she receive a P60 at the end of the tax year?

Both of the above will show how much tax and NI has been deducted by her employer.

Are Commission Only salaries actually legal?

Did you watch Panorama last night?

Edited by Eric Mc on Tuesday 4th October 09:00

Muska

Original Poster:

1,125 posts

183 months

Tuesday 4th October 2011
quotequote all
She does receive a payslip each month with deductions shown & a P60.

I missed the show last night but plan to catch it on one of the iPlayer things.

I have now seen her contract and she is 'employed' I believe the holiday path thing is correct but it's opened up so many more questions for me about her job and this commission thing.

Xtype

2,789 posts

199 months

Tuesday 4th October 2011
quotequote all
just out of curoisity what sort of salaries do they earn on average? I have always been intrigued by people who take commission only roles, having never been within the sales industry it is something I would not like to have sitting on the back of my mind.

One of the sales reps who gets my custom every month is commission only and has been for the last 20 odd years he has worked for the company, he likes it because if he has a bad month his boss is not on his back as much as the other guys that are salaried, they did offer him a salaray but he choose to stay on commission only.

Geoffers

889 posts

254 months

Wednesday 5th October 2011
quotequote all
Xtype said:
just out of curoisity what sort of salaries do they earn on average? I have always been intrigued by people who take commission only roles, having never been within the sales industry it is something I would not like to have sitting on the back of my mind.

One of the sales reps who gets my custom every month is commission only and has been for the last 20 odd years he has worked for the company, he likes it because if he has a bad month his boss is not on his back as much as the other guys that are salaried, they did offer him a salaray but he choose to stay on commission only.
Not sure about nowadays, but I used to sell Gas and Elec about 10 yrs ago, all door to door cold calling, was not my sort of thing, but had just returned to the UK after my latest Diving Job, and was settling down etc.
Thought I would hate it, no basic wage, and targets etc,only meant to do it for a few months, but ended up with them for about two years.
Hours were meant to be 12.00 until 20.00, but I was always home by 18.00 at the latest, usually made £2500 per month on average, best month was £3650.