Salespersons and direct sellers - Employment standards exceptions

Basic rules

• There are no requirements for employers to pay salespersons and direct sellers overtime.
• The requirement to confine an employee’s hours of work within a period of 12 consecutive hours in a work day does not apply to salespersons and direct sellers.
• Employers of salespersons and direct sellers aren’t required to maintain records of the regular and overtime hours worked by employees.
• Employers are exempt from being required to pay salespersons and direct sellers general holiday pay or provide general holidays.

• Employers of travelling salespersons are not required to provide vacation pay or time off.

Salespersons

A salesperson is someone who sells:

• automobiles, recreational vehicles, trucks or busses
• manufactured homes
• farm machinery
• heavy duty construction equipment or road construction equipment

Travelling salespersons

A travelling salesperson is someone who:

• solicits orders, mainly outside the employer’s place of business for goods or services to be delivered to the buyer, and
• is paid in whole or in part by commission
  • this does not include route salespersons

Direct sellers

A direct seller:

• is a person who solicits, negotiates or concludes a business transaction in person
• conducts business at any other place than the seller’s place of business
• obtains sales contracts for goods or services
• sells direct to the consumer

Direct selling is defined by the Direct Selling Business Licensing Regulation and the Designation of Trades and Businesses under the Fair Trading Act.

Hours of work and pay

The standard overtime rule of hours worked in excess of 8 hours a day or 44 hours a week, whichever is greater, doesn’t apply to salespersons and direct sellers.

Exceptions to the minimum standards for regular and overtime hours

There are no requirements for employers to pay salespersons and direct sellers overtime.

Exceptions to the minimum standards for hours of work

The requirement to confine an employee’s hours of work within a period of 12 consecutive hours in a work day doesn’t apply to salespersons and direct sellers.

Payment of earnings

Exceptions to the minimum standards for pay statements

Employers of salespersons and direct sellers aren’t required to maintain records of the regular and overtime hours worked by employees. However, they are subject to the other requirements of employment records of the Employment Standards Code.

General holidays and pay

Exceptions to the minimum standards for general holidays and general holiday pay

Employers are exempt from being required to pay salespersons and direct sellers general holiday pay or provide general holidays.

Vacations

Exceptions to the minimum standards for vacations and vacation pay

Employers are exempt from being required to pay travelling salespersons vacation pay or provide vacation time off.

This exception only applies to travelling salespersons. Direct sellers and other salespersons are covered by all regular employment standards rules for vacations.

For definitions of the different types of salespersons, see Salespersons and Direct sellers.

Additional Employment Standards

In addition to the special provisions outlined above, all other minimum standards for employment apply to salespersons and direct sellers.  Additional information on these rules can be found at:

• Averaging arrangements
• Breaks and days of rest
• Deductions from earnings
• Job-protected leaves
• Minimum wage
• Payment of earnings
• Termination of employment
• Vacations (except for travelling salespersons)
• Youth employment

How the law applies

Part 1 of the Employment Standards Regulation outlines the provisions for salespersons and direct sellers.

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