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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 47349
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Ben, I would like feedback on a one page contract we have

Customer Question

Hi Ben,I would like feedback on a one page contract we have put together for sales agents. Our model is to pay sales agents with an on-going monthly/fortnightly/weekly commission for the life-time of the client gained. Our contact has two clauses which we anticipate would allow the eventual stoping of these commissions. The clauses are 4 and 4.1. This is a key requirement of this document. In addition, we would like general feedback to ensure this document is clear and up to the required standard so that sales agents understand all the terms before agreeing. The contract is attached. We look forward to your response.Regards,Zeeshan
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.

H there, I see that clause 4 states that this can be terminated with notice, what notice is that and where is it contained?

Customer: replied 1 year ago.
The notice is one month and shall be added within the contract.
Expert:  Ben Jones replied 1 year ago.

Hi there, some minor changes made, together with comments on a couple of clauses. Apart from that it is fine, subject to the discussed notice period clauses being added.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you

Customer: replied 1 year ago.
Hi Ben, thanks for the help. So as discussed in terms of monthly commissions despite the post saying commisions will be paid for the lifetime of the client obtained, due to clause 4 the commissions can eventually be cut since the agreement itself states that any party can cancel subject to the one months notice?
Customer: replied 1 year ago.
In addition Ben, can a company operate a a ltd company as well being a sole trader?
Expert:  Ben Jones replied 1 year ago.

Where is it stated that commission applies for the lifetime of the client?

Customer: replied 1 year ago.
No this is not on the contract it is on an advertisement on a website that we have up for sales reps.
Expert:  Ben Jones replied 1 year ago.

ok the contract will be the more important part, but to cover yourself maybe you want to make the advert say something like "on-going monthly/fortnightly/weekly commission for the life-time of the client gained, subject to contract"

If your original question has been answered I would be grateful if you could please quickly rate my answer by selecting 3, 4 or 5 starts at the top of the page - it only takes a second to do and is an important part of our process. I can still answer follow up questions afterwards if needed. Thank you

Ben Jones and 3 other Employment Law Specialists are ready to help you
Customer: replied 1 year ago.
Is this completely necessary though since the contract will also state this (ongoing commission) however, as stated the entire agreement can be canceled subject to notice. Would this then be sufficient and legal.
Expert:  Ben Jones replied 1 year ago.

yes it can be but you want to cover yourself as best as possible and not give them any opportunities to try and challenge it so it is about safeguarding your position as best as you can, but not legally necessary

Customer: replied 1 year ago.
Thanks Ben and going back to my previous question can a compnay be ltd and sole trader?
Customer: replied 1 year ago.
In addition Ben, the attachment that you provided is unable to open. Can you please send this to***@******.*** Much appreciated.
Expert:  Ben Jones replied 1 year ago.

Hi sorry not sure if the upload did not work, I have tried again. In terms of the final quesiton, a corporate entity can only have one status, i.e. limited company or sole trader. You cannot register is as both - you need to choose which one you prefer and register and run it as such. You can have two separate entities running alongside each other but they will have to be registered and run separately

Expert:  Ben Jones replied 1 year ago.

And here is the document again

Expert:  Ben Jones replied 1 year ago.

For some reason it does not work, I think it may be a system issue, please try this instead

http://www.mediafire.com/download/45ifhahameh7cc3/REP_AGREEMENT.docx

Customer: replied 1 year ago.
Hi Ben , I have managed to download the documents, thanks. So going back to the final question, lets say there were two separate entities but providing exactly the same service/product, however, with some agreements e.g with the sales reps agreements, it is carried out with only one entity mentioned. If another activity or agreement is done the other entity would be used. Is this possible?
Expert:  Ben Jones replied 1 year ago.

Yes that is possible. So for example the reps could have two separate agreements for two different activities, one with each entity

Customer: replied 1 year ago.
Ben, a Final Q, must you be registered as a sole trader immediately after you start trading as a sole trader or can this be done after?
Expert:  Ben Jones replied 1 year ago.

HMRC state that if you do start working as a sole trader you must register with them by 5 October of your business’ second tax year

Customer: replied 1 year ago.
Thanks Ben
Expert:  Ben Jones replied 1 year ago.

You are welcome