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Copyright (c) 1980 Comparative Labor Law & Policy Journal
 Comparative Labor Law & Policy Journal

ARTICLE: FRINGE BENEFITS OF EMPLOYMENT IN THE U.K.

Winter, 1980

3 Comp. Lab. L. 140

Author

V. J. Shrubsall *

Excerpt

Commission/Overtime/Bonus Payments: Profit-sharing Schemes

The payment of commission on sales has traditionally been the benefit or burden of employment as a sales representative, according to the employer's policy. It used not to be uncommon for commission, as a percentage of sales, to form the bulk of earnings, with companies paying a low fixed salary or retainer. In such circumstances the payment of commission could not be seen as a fringe benefit of employment in the sense of an extra monetary reward for performance, but rather as the principal part of the remuneration. It seems that it is now becoming more common for the employer to pay a realistic basic salary and make commission payments only in moderation and by way of bonus payments. The Norwich Union Insurance Group, for instance, makes commission payments of a maximum of 200 per annum to any member of the selling staff to exceed his given target of premium income. The Boots Company operates a group commission scheme for its sales representatives. If sales achieved by the group exceed targets, small commission payments are made to individuals within the group.

Overtime payments are nearly always made to hourly paid employees who are required to work beyond the normal weekly hours of work. The usual rates are 1 1/2 x normal hourly rates for evening and Saturday overtime and 2 x normal hourly rates for Sunday work. Staff employees are usually not paid for overtime work but may be given time off ...
 
 
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