Here are some examples of potential sellers and buyers who should use this agreement. 2. Payment of the sales commission. The company pays the contractor a sales commission (a regular commission) equal to 15% of the retail price paid by the customer for the products [company names] ordered (sales of products). The retail price excludes: taxes, shipping and handling as well as any other special tax paid by the customer. The company may consolidate all sales commissions owed by the contractor for sales made and recovered during the last billing period. Commission payments to the contractor are made monthly. f. All costs and expenses incurred by the sales advisor for the performance of the service (including, for example, telephone and travel) and other marketing and distribution costs are borne by the sales advisor and are not reimbursed by the company.] 2. [Seize the time available to the company to transfer the payment of commissions to the sales advisor.] This form of agreement is particularly useful in non-sale situations where the contractor is required to actively seek out the customer and turnover and is rewarded with commissions. Such an agreement also allows for greater flexibility than permanent employment.
A short-term renewable contract can help a company maintain its staff in line with market requirements. The terms of this proposal are intended to reduce the risk that the individual contractor will be considered a de facto employee of your business and not (and as expected) as an individual contractor who works as an independent contractor. However, whether he is being treated as an independent contractor by HMRC, an employment tribunal or any other body does not depend solely on the content of that contract. It also depends on all other circumstances, including the practical implementation of the contract, and the agreements between your company, the person and anyone mandated by the individual to carry out the sales work for the individual. Nevertheless, a carefully formulated contract guaranteeing the independence of each contractor is an important starting point.