Working on commission and without a base salary
When you start a work relationship with any company, it is very important that you know the labor conditions that you are accepting in your employment contract, since it will determine the labor rights and legal benefits that will be granted to you.
Every employee has the right to enjoy one day of rest for every six days worked. There are also mandatory breaks established by the SPTS. If for any reason you must work on mandatory rest days, your employer must pay you, independently of the salary corresponding to your work, a double salary for the service rendered.
Women who are pregnant have the right to take 12 weeks of rest before giving birth and after giving birth, in order to be able to enjoy maternity and take care of their child during the first month.
This benefit must be granted by the company so that women who are breastfeeding can enjoy two extraordinary breaks per day, of half an hour each, to feed their children. The duration of this right is a maximum of six months from the date of birth.
Example of salary by commission
In the event that the employee’s remuneration consists totally or partially of commissions, and regardless of the payment conditions agreed between the company and the client, such commissions shall be deemed to have accrued and shall be settled and paid together with the other ordinary remunerations of the period in which the operations were carried out or the events that gave rise to them occurred, unless for technical reasons this is not possible, in which case they shall be settled and paid together with the remunerations of the following month. The clause that defers the payment of commissions to the employee, in violation of the limits established in this article, shall be deemed not to be written.’REMUNERATION, VARIABLE REMUNERATIONREMUNERATION, VARIABLE REMUNERATION
In the event that the employee’s remuneration consists totally or partially of commissions, and regardless of the payment conditions agreed upon by the company with the client, such commissions shall be deemed to have accrued and shall be settled and paid together with the other ordinary remunerations of the period in which the operations were carried out or the events that gave rise to them occurred, unless for technical reasons this is not possible, in which case they shall be settled and paid together with the remunerations of the following month. The clause that defers the payment of commissions to the employee, in violation of the limits set forth in this article, shall be considered as not written.
Sample employment contract with sales commissions
Let’s start at the beginning… What is a commercial contract? It is a contract for the provision of services between a company and a person in which the contracted worker is independent and self-employed.
There are some other differences, but these are the three main ones. In general, it could be said that the company is exempt from paying any kind of tax and compensation and that the employee’s situation (in case he/she is a regular employee) is worse than that of any employee with a labor contract.
This is not always the case, since in case you are self-employed and you have many clients this contract is something normal. However, if a company hires you and does so under this contract, you are becoming a false self-employed.
To find out if you are a false self-employed we must go to the “labor notes”, what is that?!, because it is about defining the elements that make up the employment relationship. This way we will easily clarify if we are in a relationship with the self-employed or not. I am going to summarize, choosing the three most important and with which we will draw the conclusion of what type of employment relationship exists:
Advantages and disadvantages of working on commission
The work of commission agents does not have special general working conditions, except for the determination of the salary for indemnification purposes; however, the subject is complicated nowadays, since it has become controversial, on the one hand, the quality of worker or commercial commission agent is discussed, and from there, the obligatory nature or not of registering them before the IMSS is derived.
Therefore, businessmen are faced with the dilemma of whether to hire commission agents through a labor contract or a commercial commission contract and determine the best option for them.
However, the option chosen is not always the correct one, since sometimes they fall into simulations to avoid the labor burden; nevertheless, it is better to analyze the situation of the commission agents and give them the appropriate treatment to avoid problems with the labor authorities as well as with the IMSS and the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit) (National Workers’ Housing Fund Institute).
Pursuant to Article 285 of the LFT, labor commission agents are trade and insurance agents, salesmen, travelers, sales promoters and the like, and will be considered employees of the companies in which they are employed.