Assistance if possible - contractor "contracts"
Discussion
Hi all
Have a new struggling business, and we have just appointed our first (of many hopefully) commission only self employed sales agent. Luckily it is a family friend so we can do things without too much pressure, but we need to draw up a 12 month contract that advises the posting is commission only, self employed, responsible for own public liability, accounts, transport etc.
Anybody advise best place to get a template from that you don't have to have a law degree to understand?
Thanks in advance !!
Rgds
Graeme
Have a new struggling business, and we have just appointed our first (of many hopefully) commission only self employed sales agent. Luckily it is a family friend so we can do things without too much pressure, but we need to draw up a 12 month contract that advises the posting is commission only, self employed, responsible for own public liability, accounts, transport etc.
Anybody advise best place to get a template from that you don't have to have a law degree to understand?
Thanks in advance !!
Rgds
Graeme
Its not really as difficult as it sounds, and a template is not often necessary.
If you do a serch on google you will find that there are some DTI backed sites which explain what is needed in a contract - stuff like place of work, holidays allowance, hours, renumeration etc.
All the contract needs to be is a little paragraph which explains what the 'deal' is with each point.
For example:
Renumeration - This will be made by cheque on the first of each calendar month. This will be the 12% of value of the turnover of sales during the previous month.
A more important thing to think about may be situations with regard to minimum wage requirements and holidays. By law you have to offer 20 days *paid* holiday per year, and also fulfil minimum wage requirements. For example, even if zero sales were made during a month you may still have to pay the current minimum wage.
The only other way around this would be to set up a business to business contract. This would be a lot more simple as you would be 'contracting in' a self employed person who will then sort their own holiday and tax arrangements.
In this case you would just be defining the terms or business - exactly what the payment for doing what work is. This would certainly be specific to your business. It is quite possible to keep the contract simple and when a 'situation' arises work through it and redefine your terms when its needed. The other option will be to set up a longer complicated contract with a clause for each situation which may arise - however, I would suggest the use of a solicitor and a few hudred quid to make sure you will be covered.
If you do a serch on google you will find that there are some DTI backed sites which explain what is needed in a contract - stuff like place of work, holidays allowance, hours, renumeration etc.
All the contract needs to be is a little paragraph which explains what the 'deal' is with each point.
For example:
Renumeration - This will be made by cheque on the first of each calendar month. This will be the 12% of value of the turnover of sales during the previous month.
A more important thing to think about may be situations with regard to minimum wage requirements and holidays. By law you have to offer 20 days *paid* holiday per year, and also fulfil minimum wage requirements. For example, even if zero sales were made during a month you may still have to pay the current minimum wage.
The only other way around this would be to set up a business to business contract. This would be a lot more simple as you would be 'contracting in' a self employed person who will then sort their own holiday and tax arrangements.
In this case you would just be defining the terms or business - exactly what the payment for doing what work is. This would certainly be specific to your business. It is quite possible to keep the contract simple and when a 'situation' arises work through it and redefine your terms when its needed. The other option will be to set up a longer complicated contract with a clause for each situation which may arise - however, I would suggest the use of a solicitor and a few hudred quid to make sure you will be covered.
The reason they are sub contract and not employee is because we advertised (and will do so) for self employed sales contractors working on a commission only basis, with own liability, holiday etc.
I have had a few websites to try from business link for a template, I will see what they are like, aparently about £30 each.
I have had a few websites to try from business link for a template, I will see what they are like, aparently about £30 each.
But how do you know the individual is actually "Self Employed"? A person cannot be "Self Employed" merely because he/she has decided to classify himself/herself "Self Employed".
Is he/she running his own business?
Does he/she provide similar services to other customers AT THE SAME TIME.
Does he/she have his/her own base of operations?
(Plus at least eight other criteria that mark the individual as "being in business on their own account"
.
Being "Self Employed" is not a question of choice but a question of fact.
Is he/she running his own business?
Does he/she provide similar services to other customers AT THE SAME TIME.
Does he/she have his/her own base of operations?
(Plus at least eight other criteria that mark the individual as "being in business on their own account"
. Being "Self Employed" is not a question of choice but a question of fact.
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