RTM company hiring directly a concierge?

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    RTM company hiring directly a concierge?

    I'm about to set-up with other leaseholders a new RTM company to take control on my building. Ww currently have a concierge hired by the managing agent and her cost/salary is included in the service charges meaning that we pay to the managing agent a commission on top...
    When we will have our RTM company in place can we decide to have a concierge hired directly by the RTM company?
    If so not only we won't have to pay a commission on top of the concierge salary but if we want at some point to get rid off the managing agent we can still keep our concierge.
    If this is possible how do we pay the concierge's salary? Currently, he's paid by the managing agent (MA) thanks to the concierge budget we have in our service charges.
    Could we ask the leaseholders to make a separate payment for the concierge cost either to the RTM company or to the MA which will send back to the RTM company??

    Any thoughts on this?
    Many thanks in advance for your advice/views.

    Kind regards

    Assuming the appointment was ever allowed by the lease, you continue to fund it in the same way.

    Some details will depend on the RTM's contract with the agent.

    If you hire them directly, you will have to operate payroll and HR functions yourself. Unless the salary is very low and they have no other job, you will need to register with HMRC as a PAYE employer, and make the PAYE payments. Even if they don't trip NI and PAYE thresholds, you will need to document that they don't. You will need to do right to work checks, and operate any statutory requirements for pensions, etc. You will need to hire agency staff to cover absences.


      The concierge will have a contract with the MA and you may be asked to pay the cost of terminating that contract. All payments will be made out of the service charges received by the RTM.


        Originally posted by eagle2 View Post
        The concierge will have a contract with the MA and you may be asked to pay the cost of terminating that contract. All payments will be made out of the service charges received by the RTM.
        Best practice would be for the concierge to have a contract with the freeholder, not with the managing agent, and employment law may protect any such contract if there is a change in employer.

        Whether any costs will be due to the managing agent would depend on the details of their contract with the freeholder, for instance any fee they receive for arranging a concierge contract might be a one off fee or a monthly payment for as long as the concierge remains in position.


          We setup RTM in 2012 and had the exact same experience, the site we took over already had a concierge employed with the managing agent. We had to offer the concierge the same employment under TUPE and his employment transferred over to us on the day of RTM. The member of staff could, if they had wanted, remained in employment with the outgoing MA if they had alternative work for him but they did not. We eventually made him redundant and had to pay the costs of this.


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