Delivering food for food outlets on a commission basis
Question:-
There are many delivery people that deliver food for various outlets. They receive a percentage of the customer’s order as their delivery fee. Is this arrangement in order?
Answer:-
In the queried scenario, the delivery person is not employed by the food outlet as an employee. He works for the food outlet on a commission basis. His commission is known and fixed before delivering the goods to the customer. For example, if an order was placed for R100.00 then it is known to him that he will be receiving R10.00 (for his service), which he accepts even before undertaking the task. Hence, there is no problem with this type of an arrangement.
Also, many of the delivery people deliver food for a number of food outlets, which again is an indication that they are not employed by a particular company but merely serve as commission agents.