Employment On Variable Pay --- No Fixed Salary

Hi Friends,
I seek advice from all of u on a situation ..as under:-
Can an organisation give appointment to any candidate on variable pay i.e no fixed salary. If terms of remuneration is something like a percentage on net revenue generation per month by the candidate.
1>Now my question is if the above is not possible.. then should the candidate be given appointment on Commission basis or on Contract Basis.
2>Would be of great help, if anybody can provide me a format of both the types of letter (On Commission basis & On Contract basis)
Thnx n expecting a good amount of feedback from my HR friends.
Suchandra

see as far as my knowledge goes u have to keep aside a certain amount as fixed basic pay.......U have to set aside a fixed amount...This amount ca be negotiated and u can try ur best to keep it as low as possible but u have to provide some fixed basic pay...the remaining can be performance based....
hope that helps...
I m sorry as i dont have any formats as such

Hi Everybody ,
Any format for appointing someone on commision basis or contract basis..
Pls guys ... i need the same .. its really urgent.
Thnx --- Suchandra

Hi
I have not seen or worked with such a situation, but I have heard of this. If I am not wrong, this is used by organizations who do not wish to show employees on their rolls, thereby avoiding PF and other costs. I understand that they do not issue any letter to the person so that they cannot claim employment status. According to me, this is not a recommended course of action.
I can suggest that
1) You make the letter similar to a letter hiring a consultant.
2) In this, you detail clearly the terms and conditions under which remuneration will be made.
3) You can suggest a base amount which would be paid, and reimbursements like conveyance, if reqd.
4) Please ensure that you mention a fixed period of employment.
After all of this, PLEASE GET THE DOCUMENT CHECKED BY A LAWYER BEFORE YOU ISSUE IT. to ensure that you don't miss out anything.
Hope this is useful.