Scenario for oral presentation.
Ali worked for Hatfield Paving Company Ltd (HPC Ltd) as a salesman. HPC Ltd sells driveways and patios to both domestic and commercial customers. He began work with them in April 2011, prior to that he had his own building company.
HPC Ltd provided Ali with customers’ contact details who wanted a new driveway or patio. Ali would then visit the customer and try to persuade them to buy a new drive way or patio. Ali would receive commission when the customers paid their deposit. Occasionally, to prevent the customer withdrawing from the contract, HPC Ltd would revisit the contract Ali had made and reduce the price. This resulted in reduced commission for Ali.
Potential leads were given to Ali by HPC Ltd. If Ali couldn’t make an appointment Ali could arrange for another member of the team to go, if this was not possible he would contact HPC Ltd to ensure that the lead was not lost.
Ali was required to wear the HPC Ltd uniform when visiting customers and had to man their Hatfield showroom one Saturday per month. Apart from that he had no set hours. HPC Ltd allowed Ali to do other work provided that he did not work for a competitor or solicit HPC Ltd.’s customers.
Ali occasionally gave existing customers gifts out of his own pocket if they recommended him to potential customers.
Ali paid his own tax and national insurance contributions.
HPC Ltd has recently announced that they will be making redundancies and asked for volunteers. Ali put his name forward but was told that he was not an employee and not entitled to any statutory redundancy pay.
Advise Ali.
DO NOT CONSIDER REDUNDANCY PAYMENTS IN YOUR ANSWER.