Motor Trade sector – Useful Empolyment Law & HR information

RBS Mentor can help your motor trade business with its Employment Law compliance and HR needs.

For your sales team, nailing down bonus and commission arrangements is key

If you’re in the retail motor trade, you’ll rely on a well-motivated sales force to drive business your way. You’ve got to get the right range of incentives and rewards in place.

But too often, when things go wrong, you can find yourself involved in time-consuming, ill-tempered and costly disputes about bonus and commission payments. Some contractual wording might leave you with too little room for manoeuvre to vary commission schemes when circumstances change, but deciding things on a handshake with no written proof may leave you open to claims for breach of a “custom and practice” contract.

You should:

  • Ensure all bonus and commission arrangements are agreed and recorded in writing
  • Take care that employment contracts give your business the necessary discretion to vary bonus and commission schemes
  • Avoid regular, but informal, arrangements that might give rise to “custom and practice” claims

RBS Mentor can provide:

  • Appropriate terms and conditions of employment and contract documentation
  • An Employee Handbook containing procedures appropriate to your business
  • 24/7 telephone advice and support on matters such as bonus and commission arrangements.

Where performance is all-important, you need to be able to take steps to improve poor staff performance

You’re likely to use sales targets to measure the performance of your staff. Performance targets might also apply to operational staff, perhaps using things such as work tasks completed, call answering rates and customer satisfaction feedback to measure work performance.

But how do you tackle substandard or poor performance? You could do this through your pay policy – so that your best performers would get an upgrade while your poor performers would not. You could also tackle poor performance through performance management measures aligned to your disciplinary procedure, so that persistent poor performance would result eventually in dismissal. But you also need to tread carefully. Poor performance might result from an employee’s disability, for example, or perhaps an employee who has just returned from maternity leave needs to find time to get back to her optimum performance level. Failing to understand the legal risks can land you in an employment tribunal with a discrimination claim, so it’s best to get expert help and guidance before taking action.

You should:

  • Consider appropriate performance measures to support your business objectives
  • Ensure you make use of performance management tools to drive improved performance
  • Always take advice before taking disciplinary action against employees for poor work performance.

RBS Mentor can provide:

  • Full guidance about performance management and appraisal procedures on MentorLive
  • E-learning modules on performance management, including handling difficult conversations
  • 24/7 telephone advice to support you though performance management and disciplinary procedures.

Maintaining driving licences and technical competence are essential, so it’s best to be clear about what’s expected of employees.

In driving and technical work, it will be necessary for employees to maintain a clean driving licence, and to keep up with training on technical developments. Where you have these expectations, it’s always best to set them out clearly in the employee’s contract of employment. If you don’t, it may be difficult to prove later what was agreed, and what might be reasonable grounds for terminating the employment.

You should:

  • Have a clear policy on driving licence requirements
  • Check driving licence and technical qualification documents on a regular basis and keep records
  • Ensure all training, professional competence and qualification requirements are set out in the employee’s contract of employment.

RBS Mentor can provide:

  • Appropriate terms and conditions of employment and contract documentation
  • An Employee Handbook containing procedures appropriate to your business
  • 24/7 telephone advice and support.

 



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