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Joint Venture with the employer considerations
08-Sep-2023 (In Labour & Service Law)
Hi, A new employer is offering a salary and percentage of sales. I want the employer to keep paying the sales percentage for 10 years even if I leave the employment. For this he suggested that we do a joint venture in addition to the employment agreement. Now, my questions are - 1. Is JV (in addition to the employment) the best option for this scenario? 2. Since I will not be doing sales myself, how will I keep track of sales being done by the employer (he has entities in many countries) if he chooses to not inform me. 3. What other considerations should I have for this scenario?
1. Yes the JV is the best option in this scenario as you are looking for the share in the profit of the business the Company is engaged in with.
2. You need to demarcate in your JV that you should have the access to the accounts of sales of the company in order to determine your share in the sales.
3. You can better ask for the managerial position in the company which has the order making capacity in the affairs of the business specifically related to the sales department.
I would suggest you to only go for JV and the position as mentioned in column 3 and not for employment. As JV and employment is two different things not to be done at one single time as per legal recommendation.
2. You need to demarcate in your JV that you should have the access to the accounts of sales of the company in order to determine your share in the sales.
3. You can better ask for the managerial position in the company which has the order making capacity in the affairs of the business specifically related to the sales department.
I would suggest you to only go for JV and the position as mentioned in column 3 and not for employment. As JV and employment is two different things not to be done at one single time as per legal recommendation.
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Adv. Pulkit Prakash
Delhi | 400+ Answers
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1. Yes this seems feasible option. Your approach and thought are in right direction. But you need to clarify whether JV will be in form of a company or partnership. Also good paper-work is essential and a must.
2. Contract will have to be worded in a manner that both sides give full disclosure to each other.
3. A good draft and negotiation skills are a must. Duties and liabilities of both parties have to be spelled out correctly. All other things can be taken care of in the contract/agreements.
2. Contract will have to be worded in a manner that both sides give full disclosure to each other.
3. A good draft and negotiation skills are a must. Duties and liabilities of both parties have to be spelled out correctly. All other things can be taken care of in the contract/agreements.
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Adv. Rishi Raj Sharma
Delhi | 100+ Answers
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This is strictly not a legal query. Entering a JV or employment has to be a considered decision on your part. If you enter into a valid contract with this company, then the contract must have clauses to address all your concerns. Get a contract drafted by an expert.
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Adv. Wg Cdr Mohammed Mujeeb (Retd)
Delhi | 200+ Answers
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