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Can I pay my employees salaries based on a project but not as a fixed salary [closed]
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Can I pay my employees salaries based on a project but not as a fixed salary?
The reason for this is because the company does not pay invoices per month, but only on the jobs completion. So employees must also work and complete their jobs.
Will this be fair as it will not affect their rates at all?
salary
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
asked Jun 29 '16 at 10:28
Paul
2
closed as off-topic by paparazzo, Jim G., Jenny D, Lilienthal♦, Magisch Jun 29 '16 at 12:10
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – paparazzo, Jim G., Jenny D, Magisch
 |Â
show 1 more comment
up vote
-3
down vote
favorite
Can I pay my employees salaries based on a project but not as a fixed salary?
The reason for this is because the company does not pay invoices per month, but only on the jobs completion. So employees must also work and complete their jobs.
Will this be fair as it will not affect their rates at all?
salary
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
asked Jun 29 '16 at 10:28
Paul
2
closed as off-topic by paparazzo, Jim G., Jenny D, Lilienthal♦, Magisch Jun 29 '16 at 12:10
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – paparazzo, Jim G., Jenny D, Magisch
3
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
1
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
2
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58
 |Â
show 1 more comment
up vote
-3
down vote
favorite
up vote
-3
down vote
favorite
Can I pay my employees salaries based on a project but not as a fixed salary?
The reason for this is because the company does not pay invoices per month, but only on the jobs completion. So employees must also work and complete their jobs.
Will this be fair as it will not affect their rates at all?
salary
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
asked Jun 29 '16 at 10:28
Paul
2
Can I pay my employees salaries based on a project but not as a fixed salary?
The reason for this is because the company does not pay invoices per month, but only on the jobs completion. So employees must also work and complete their jobs.
Will this be fair as it will not affect their rates at all?
salary
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
asked Jun 29 '16 at 10:28
Paul
2
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
edited Jun 29 '16 at 10:41
Kilisi
94.4k50216374
94.4k50216374
asked Jun 29 '16 at 10:28
Paul
2
asked Jun 29 '16 at 10:28
Paul
2
asked Jun 29 '16 at 10:28
Paul
2
2
closed as off-topic by paparazzo, Jim G., Jenny D, Lilienthal♦, Magisch Jun 29 '16 at 12:10
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – paparazzo, Jim G., Jenny D, Magisch
closed as off-topic by paparazzo, Jim G., Jenny D, Lilienthal♦, Magisch Jun 29 '16 at 12:10
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – paparazzo, Jim G., Jenny D, Magisch
3
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
1
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
2
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58
 |Â
show 1 more comment
3
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
1
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
2
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58
3
3
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
1
1
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
2
2
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58
 |Â
show 1 more comment
1 Answer
1
active
oldest
votes
up vote
5
down vote
You can pay employees any way you want (within the bounds of local laws), the hard part is getting employees who would agree to such a thing. Most people do not want to be worrying about getting paid, they want a steady, dependable income. And it's usually up to the employer to provide it and make sure they keep the work flowing so that they can, not the staff.
My suggestion would be to use consultants, because that is often how their billing is done.
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
suggest improvements |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
5
down vote
You can pay employees any way you want (within the bounds of local laws), the hard part is getting employees who would agree to such a thing. Most people do not want to be worrying about getting paid, they want a steady, dependable income. And it's usually up to the employer to provide it and make sure they keep the work flowing so that they can, not the staff.
My suggestion would be to use consultants, because that is often how their billing is done.
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
suggest improvements |Â
up vote
5
down vote
You can pay employees any way you want (within the bounds of local laws), the hard part is getting employees who would agree to such a thing. Most people do not want to be worrying about getting paid, they want a steady, dependable income. And it's usually up to the employer to provide it and make sure they keep the work flowing so that they can, not the staff.
My suggestion would be to use consultants, because that is often how their billing is done.
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
suggest improvements |Â
up vote
5
down vote
up vote
5
down vote
You can pay employees any way you want (within the bounds of local laws), the hard part is getting employees who would agree to such a thing. Most people do not want to be worrying about getting paid, they want a steady, dependable income. And it's usually up to the employer to provide it and make sure they keep the work flowing so that they can, not the staff.
My suggestion would be to use consultants, because that is often how their billing is done.
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
You can pay employees any way you want (within the bounds of local laws), the hard part is getting employees who would agree to such a thing. Most people do not want to be worrying about getting paid, they want a steady, dependable income. And it's usually up to the employer to provide it and make sure they keep the work flowing so that they can, not the staff.
My suggestion would be to use consultants, because that is often how their billing is done.
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
edited Jun 29 '16 at 10:45
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
answered Jun 29 '16 at 10:37
Kilisi
94.4k50216374
94.4k50216374
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
suggest improvements |Â
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
Good Afternoon, Kindly note that I appreciate your feedback in this regard and note that I am actually acting on behalf of another employer who needs me to revise the current contract on payment terms to this new changes. I know its fair but needed to have side of support from other professionals, I will revise the contracts accordingly and inform all affected parties with all changes.
– Paul
Jun 29 '16 at 11:49
5
5
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
To iterate on that: If you want your employees to accept that uncertainty that comes with such a pay structure, you'll have to prepare to pay well above market rate.
– Magisch
Jun 29 '16 at 12:11
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
@Magisch or no employees at all
– Kilisi
Jun 29 '16 at 13:37
5
5
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
@Magisch: Not above the market rate. But at the market rate for contractors, not the market rate for employees. IMHO 150 days contracting should pay the same or more as one year employment to take care of the risks. On the other hand, it seems that this company wants to do this because they don't have money to pay employees. Big, big red flag.
– gnasher729
Jun 29 '16 at 14:29
suggest improvements |Â
3
Please dont abuse the shift/caplock key.
– Raoul Mensink
Jun 29 '16 at 10:34
Legal question and terrible formatting. Voting to close.
– paparazzo
Jun 29 '16 at 10:36
1
Needs a location at minimum to even attempt to answer this but note that A) it's probably illegal, and B) it's a terrible idea.
– Lilienthal♦
Jun 29 '16 at 11:34
@Lilienthal it is completely legal to do so. You are simply replaceing hours with products. The only Problem I see with it is that you Need to Change hours billed per product every time instead of a fixed hours per month. Which can be administrive pain also how would you calculate vacations is going to be an issue
– Raoul Mensink
Jun 29 '16 at 12:48
2
@RaoulMensink Depends on the timeframe and whether the employees are contractors. Actual employees need to be paid for their hours worked within X amount of time (2 weeks in most US states IIRC). I believe OP is proposing not paying people for months at a time and only on completion of the project. If he's talking about short jobs then he wants contractors not employees.
– Lilienthal♦
Jun 29 '16 at 13:58