Question :
I have been approached by someone who wants to work as a sales executive on a commission only basis. He has a full time job (night shift) and wants to do this as a side hustle. We have worked with him before so both sides are keen to move forward. My question is about if it’s legal to have him as a contractor who is only paid on commission. The MBIE website does not give a clear answer and they have not replied when I asked this question.

Question submitted 13/06/20 @ 04:34pm
Industry: Legal
  • Morena – I am just thinking the only issue here covers the ‘minimum wage provisions’ – but if he is willing and knows what he is getting himself into and on successfully selling her earns more than the minimum wage, I believe you will be totally fine this arrangement. Andy

    Hello – key issue is how you engage this person. If you engage them as a contractor on a contract for service with the usual terms about provision of services being on a contracted basis (GST for services rendered etc), then minimum wage will not be an issue. If you engage them as an employee on an employment agreement then you would have minimum wage issues to worry about (along with other minimum standards which the legislation requires for employees which would not be met on the model you are both contemplating). Make sure you utilise a contract for services document and that it has the usual provisions that make it clear that both parties agree that it is a contracting relationship, not an employment relationship.

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