ASK HR: How do I improve their working conditions?
I am an HR officer at a transport company. Most of the employees in our company are drivers paid on commission. PHOTO| FILE| NATION MEDIA GROUP
What you need to know:
- Have this discussion with your management team and explain to them the reason the drivers should be given retainers and commissions to cushion them against unnecessary worries and ensure that the company abides to the law.
The change of engagement for the drivers will motivate them and they will be more productive, which will translate into more business for your company.
Q. I am an HR officer at a transport company. Most of the employees in our company are drivers paid on commission. The drivers are not entitled to annual leave, off days, sick leave and public holidays, though if they need time off, they get it.
Their employment letters state that they are not entitled to any pay for any leave/off days taken. Is this right practice?
Furthermore, some drivers at one of our branches earn a retainer plus commission if they hit a certain target. With this arrangement, are they entitled to paid annual leave, off days, sick leave and public holidays? Currently, the company does not grant them these benefits.
There are different categories of service contracts and each has pros and cons. Employees engaged on full-time basis have a fixed salary, while independent contractors earn commission for targets met. Full-time employees have stability as they get regular income while independent contractors have variable incomes.
An independent contractor earning a commission has more often than not the ability to influence the income because it is directly proportional to work done. One on fixed salary cannot influence the earnings. The independent contractor also has flexi-time compared to an employee engaged full-time. Both the employees and the contractors are entitled to annual leave of 21 working days after working continuously for two months. The difference is that a full-time employee is paid while on leave but the one on commission is not.
Sick off, off days and public holidays must be enforced according to labour laws. If the independent contractor has a retainer, then the question of non-payment while away does not arise as the retainer is still payable. However, as companies decide on the engagement contract, the type of industry should be considered. Commission structure might force the drivers to speed or work long hours, which make them vulnerable to accidents and other consequences.
Have this discussion with your management team and explain to them the reason the drivers should be given retainers and commissions to cushion them against unnecessary worries and ensure that the company abides to the law.
The change of engagement for the drivers will motivate them and they will be more productive, which will translate into more business for your company.
