The situation... I worked in sales over the summer and used to get paid weekly, on a Saturday / Sunday, 2 weeks in arrears. I wasn't on a salary, but instead how much I earnt was determined purely by how many sales I got. I would make a sale, fill in the paperwork, hand it in, then get paid 2 weeks later by bank transfer. While I was still working there, I was told that after I left any outstanding pay would go into a retention account for 90 days to cover any sales that didn't go through for whatever reason. I wasn't paid at the weekend of the week I left, so I went away expecting 3 weeks pay in 90 days time. 90 days passed and I didn't receive anything. I waited another week or two and still nothing. I tried messaging the manager and received no reply. I tried emailing the office (with a delivery and read receipt that came back successful), but no response. I asked some of my colleagues who left at the same time as me and they are having the same issue. Now, the problem is that I never signed a contract... nobody did. but at the time I was just happy to be getting any money at all. (Yes, I realise how fishy this sounds.) Honestly, I can't say I didn't see it coming, but is there anything I can do about it? Any help / advice would be appreciated. Cheers
If it was commission only then you would have been classified as an independent contractor (If you're an employee then you need to be paid minimum wage). This is going to make you liable for your own Tax and NI payments. So the first question you should ask yourself is - is it worth the hassle?
It was commission only. AFAIK, I wouldn't be liable for income tax and NI because I didn't earn enough. (?)
Ahh...in that case gather up all the evidence you can and tell the others to do likewise. I'd imagine your best bet is small claims court. I don't believe you can technically make the claim as a group, but lots of people complaining is more compelling than one. Luckily you were paid by regular bank transfers - so you all have a paper trail as evidence of employment despite not having a contract. If you didn't keep a record of your own sales then claim for 3 weeks of average sales.
When you are offered work, but there is no contract to sign, you should ask yourself: why not? It takes less than a minute to draw up a contract. Most companies will have a standard one on file. So it's click, print, read, sign. Takes no time at all. No contract = be prepared to be screwed over. It is not a careless omission; it is a deliberate strategy.
Be aware that verbal agreements do have standing as a contractual agreement. The issue being is proving what has been said. I would think you still have to file a self assessment tax return just for completion, by the way, whether you are due to pay anything or not. My advice would be to get a gang of you and go round there. Hopefully there is enough of you that can verbally testify to being under the same agreement, majority witness of that statement = win.
You would - my housemate made the same assumption, got told otherwise by an accountant and then got a £100 fine for sending his tax return in late, even though he hadn't earned enough to pay any tax that year.
it maybe worth talking to the tax man as well, they will decide if you should have been paid the minimum wage.
