Wages question about percentage

My mate works for a small family firm who run half a dozen trucks, he gets paid on percentage (dont need a lecture about all the legality etc) his question is… (i hope this makes sense!) if his truck earns (for example)£2000 a week, and his expenses (paying to park at truckstops, m’way services, tolls etc, all with proper receipts) come to say £50, would you as a boss pay him the percentage of what he’s earned (£2000) then pay him the £50 expenses (as i say he should)… or as his boss seems to be doing to him, pay him the £50 expenses out of the £2000 he’s earned, then pay him the percentage of the remaining £1950. As far as im concerned, his boss is taking money off him that he shouldnt be (in this case £50) as he can claim it back anyway, so he’s basically pocketing the £50 for himself. I hope that made sense! To the people who pay percentage, which way round do you do it■■?

All these issues should be discussed, resolved and a contract signed before the job commences
Without such a contract there can be no definitive answer

that depends on whether it it net earnings or gross earnings

if the truck as you say earns £2000 per week, but has £800 per week fuel and £50 expenses, the earnings of the truck are £1150, not £2000, so the percentage would be paid on the £1150

so, he would get his £50 back as paid expenses, then the wage as percentage of the £1150

As Rog said, this should have been made clear at interview stage

as for the boss claiming the £50 for expenses back, he can only claim for the VAT part of it, unfortunately, the government won’t pay us to park in truckstops or MSU’s :imp:

i hope that makes sense

shuttlespanker:
that depends on whether it it net earnings or gross earnings

if the truck as you say earns £2000 per week, but has £800 per week fuel and £50 expenses, the earnings of the truck are £1150, not £2000, so the percentage would be paid on the £1150

i get what you mean mate, but his wages are a percentage of what the truck earns, when the boss rings him and says the motor earned £2000 last week, sureley thats wher his percentage of wages should come from?, he doesnt have to pay the diesel bills, by looking at it that way , my mate should also pay a bit each week to help pay for the servicing and tax etc etc!!?

As others have said it all depends on what is in his contract of employment. Personally if I were an employer paying percentage I would consider paying it after fuel costs were deducted to encourage fuel efficient driving, but probably not take off unavoidable stuff like bridge tolls.

Paul

I work on a % of gross earnings, end of.

I do see the “conformation sheets” at week end, I think that’s a must :wink: