Q: I am looking to hire sales staff to promote my outsourcing B2B company. Can I legally put them on a month’s trial on the basis of if they bring in ten new contracts, they get the job permanently?
Jun 27 2011
Answered by: Naylah Hamour, Howard Kennedy LLP Ask a question
Employers can offer staff any contract they choose, as long as this doesn’t impinge on employees’ statutory rights. The law grants employees a host of rights, some immediately (or even before employment) eg the right not to be subjected to unlawful discrimination, and some requiring a qualifying period eg the right not to be unfairly dismissed. However, there is no restriction on incentive arrangements, job trials etc, as long as these are not applied in a discriminatory way.
You can legally put your staff on a month’s trial, on the basis that they will be offered a permanent position if they bring in ten new contracts. Points to be borne in mind are:
• Legal obligations: pay at least national minimum wage and offer statutory minimum holiday.
• Documentation: Clearly document what is expected of the staff for them to be offered a permanent position, to avoid disputes later. Eg:
1. Do they need to bring in any 10 new contracts, or only contracts over a certain size or value?
2. What if they bring in a contract that is then cancelled?
3. What if they bring in 10 new contracts but you are unhappy with their performance for some other reason?
• Term: Will the contract automatically end in a month unless extended, or is it an ongoing contract with a review to confirm or dismiss?
• Notice: Employees are entitled to at least one week’s notice after one month’s service. Prior to that they will be entitled to “reasonable” notice, which can vary depending on the industry and the job.
• Contracts: Provide written employment contracts.
• Dismissals: If you do dismiss employees after the trial, confirm this in writing.
• Claims: Document your reasons for termination to provide a defence against possible claims.
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