My friend's works in a commission based company, however company keep all employee commissions in their company but release approx 30% to them every year. Due to COVID, everyone in his company is worrying about weather if they can get back all their commissions because the company has weird strucutre setup.
The company structure is setup like this: Company A pay employees and Company B collect money from developers. In other words, everyone signs employment contract with company A. Company B then collects money from developers. Every month the company A sends tax invoice to company B, so that company A can use the money to pay employees. Company B changes bank account every year for unknown reasons. He said heard about this from ex-branch director who is currently having legal issue with the company.
My question is, is this leagal? and what happened if company A closed, can they get their money from company B?
The company structure is setup like this: Company A pay employees and Company B collect money from developers. In other words, everyone signs employment contract with company A. Company B then collects money from developers. Every month the company A sends tax invoice to company B, so that company A can use the money to pay employees. Company B changes bank account every year for unknown reasons. He said heard about this from ex-branch director who is currently having legal issue with the company.
My question is, is this leagal? and what happened if company A closed, can they get their money from company B?