Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: Leave - Sales agents working on commission only

  1. #1
    New Member
    Join Date
    Dec 2014
    Location
    Bellville
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Leave - Sales agents working on commission only

    I would like to know if a agent only working on commission how the leave work?

    Thanks

    Mary-Annne

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Mary-Anne View Post
    I would like to know if a agent only working on commission how the leave work?
    As in paid leave?
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    New Member
    Join Date
    Dec 2014
    Location
    Bellville
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Yes as paid leave?

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Obviously there is no financial effect as we are talking commission only remuneration. Thinking about a call centre environment, I can see that attendance might be an issue in its own right though.

    All seems a little meaningless in a commission only deal, but for what it might be worth -
    The Basic Conditions of Employment Act provides for 1 shift paid leave for every 17 shifts worked, or 3 weeks paid leave for every completed year.

    Provided the BCEA is applicable, of course.
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,671
    Thanks
    88
    Thanked 544 Times in 460 Posts
    Blog Entries
    1
    I heard on the radio recently, that commission based earnings attract an average of the commission as the reference for leave pay as the reference figure.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  6. #6
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    Take the last 13 weeks of earnings and obtain an average.
    Multiple by the relevant leave quota.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  7. #7
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    My thoughts were always that a commission only agent is exactly that - commission only. However a few weeks ago my accountant enlightened me on a different point of view. He pretty much said that a commission only employee is entitled to receive an average commission payment during their annual leave.

    I thought he was smoking his socks and promptly forgot about his point of view. However Dave's example of a call centre operator does have an inkling of logic behind it. In that scenario the employee is expected to be at the office like a regular employee. In that case I understand that they get all the perks of being an employee and the commission is simply used as a means to calculate a salary value.

    Take however the example where one would have sales "agents", such as work from home moms. These types of agents do not having working ours dictated and are pretty independent from the commission payer. Surely this type of agent is not entitled to paid leave?

    Does this then become a decision around whether the person is an employee or an independent contractor (or whatever the term is they use now)?

    If I have got the above sort of correct, then from the OP:

    1) If the "agent" is a genuine employee who has to work certain hours and follow employee type rules, then they are entitled to leave and leave pay calculated as per Anthony and Victor's posts above.
    2) If the "agent" is a genuine independent agent who works on their own terms and times and receives only commission payments (no basic) then I would deduce that no leave is due, or leave pay calculated.

    What say you guys?

  8. #8
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by BusFact View Post
    What say you guys?
    I think we're certainly getting closer to something that makes sense.
    The trouble with opportunity is it normally comes dressed up as work.

  9. #9
    Platinum Member sterne.law@gmail.com's Avatar
    Join Date
    Oct 2009
    Location
    Durban
    Posts
    1,328
    Thanks
    38
    Thanked 561 Times in 410 Posts
    Blog Entries
    7
    You should refer to the code that speaks to who is an independent contractor.
    This determines if a person is an employee or independent. The name the contractor is not important, it's the content.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

  10. #10
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    832
    Thanks
    180
    Thanked 176 Times in 145 Posts
    Quote Originally Posted by sterne.law@gmail.com View Post
    You should refer to the code that speaks to who is an independent contractor.
    This determines if a person is an employee or independent. The name the contractor is not important, it's the content.
    Then are you saying my view is correct? If so, regarding the OP, the first thing to do is determine if the "agent" is an employee or an independent contractor.

    Only once its confirmed they are indeed an employee, should leave commission be calculated as per earlier posts.

    I'm probably being a bit pedantic here, but the term "agent" would normally indicate to me an independent person, not an employee. Although this does not have to be the case of course.

Page 1 of 2 12 LastLast

Similar Threads

  1. Replies: 7
    Last Post: 10-Oct-14, 07:33 AM
  2. [Question] Legislation on Commission earned on sales
    By craigba in forum Labour Relations and Legislation Forum
    Replies: 5
    Last Post: 06-May-11, 06:55 PM
  3. What recourse for Freelance sales person not paid earned commission
    By Versatile Marketing in forum Labour Relations and Legislation Forum
    Replies: 11
    Last Post: 08-Mar-10, 01:15 PM
  4. Replies: 1
    Last Post: 07-Sep-09, 07:22 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •