According to Anita Pagliasso, President of PATH: “To the extent that PATH requires it in an IC agreement, there are standard contracts that have been published by ASTA with guidelines containing terms, conditions and details of the Commission. We provided PATH members with a copy of the asTA-recommended agreement. Compensation should be very clear in your contract. How do you know it`s clear enough? The advice of Lobassos is: “Ask someone who knows nothing of how your company works to check the commission plan, and then explain how it works and how much the contractor would earn if an individual is sold . . . If the commission cannot be calculated solely on the basis of what appears on the printed page, it is a pretty good indication that the structure in the designed form is not clear enough and that the revisions are correct. This is where Assembly Bill 5 (AB5) was signed by the Governor, which changed the way workers are considered employees or independent contractors. The bill was drafted in response to an appeal called the Dynamex decision. It replaced the previous standard used to determine the status of the work force, the Borello standard. Of the three requirements (known as the ABC test), the “B” task is the most difficult for independent contractors to accomplish. “Travel agencies that contract independent contractors in California by selling trips are unlikely to meet the second requirement (“B”) and therefore will not pass the ABC test,” says Lobaso. Do you have any thoughts? Want to share your experience with independent travel contracts? Share your previews of the comments below! To protect the autonomy of your business, make sure that the language of the contract recognizes you (or your agency) as an independent contractor. If you are considered an employee in the eyes of the IRS, there may be problems for you on the street.
Not too shabby? Membership is $199 for independent agents who sell less than $1 million a year in travel and $345 for members who sell above this threshold. And if you`re looking for more legal resources on the site, you can make a detour here. Perhaps it is obvious that you should have a contract with your host agency. But if you`ve never sold trips as an independent contractor (IC), how will you know? Now do it because you`re here! Draft agreement on the group of travel agencies – 5 April 2019 A standard commission agreement between travel agencies and travel agencies that set up a travel agency is like setting up a business – there is a financial risk. Your independent travel agency contract with the host agency indicates that the IC assumes this risk. As Friedman explains, “the agreement should describe the relationship between the parties and the risk of loss of ICR in the event that the commissions do not cover the expenses incurred.” A. The worker is free from the control and direction of the participant in the execution of the work;B. The workforce does work outside the usual activity of the recruitment unit; and C. The worker usually works in an independent company. “Like many other sectors, travel agencies rely heavily on services provided by independent contractors (CI), an agreement that our members believe provides us with significant benefits for both workers and businesses when a traditional working relationship is impractical or unprofitable. Both parties benefit from the flexibility of the company and the entrepreneurial spirit opportunities offered by the IC agreements,” he wrote.