Due to lockdown crises, company management wants to convert 2 employees who have not performed well since last 6 months from full time salary to Commission basis. Need a letter for the same. Please help me on this what should be written on that.
From India, New Delhi
Labour Law & Hr Consultant
Head Of People Operation


Dear Njcorp,

In the first place, as an employer, you cannot unilaterally convert a contract of service to that of a contract for service just on the pretext of under performance by the concerned employees. In a commission-based engagement of services of a person, there exists only a relationship of principal and agent but not that of employer and employee. The employer-employee relationship revolves around the four elements viz., (1) the selection and engagement of the employee (2) the payment of wages or salary as a consideration for the services rendered (3) the employer's power to control the employee on the means and methods of accomplishment of the work assigned and (4) the employer's power to exercise disciplinary control over the employee including the power to dismiss. None of these elements are present in a commission based engagement.

Therefore, what you are doing is that virtually you terminate the services of the under-performing employees which will not survive Judicial Scrutiny if resisted by the concerned employees. It is better to make them improve their performance.

From India, Salem
Thank u Sir for giving ur guidance.
From India, Meerut

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