Left Job - where do I stand with commissions?
Discussion
I handed my weeks notice in to my current employer on Monday and as predicted was told they would pay me for a weeks notice but I could leave immediately. I worked in a sales role and was paid my commission a month in arrears and so everything I made last month was due to be paid at the end of January.
However, I know of people that have left in the past and not been paid this money, so today I emailed my employer to establish the situation as there is nothing in my contract about this. He responded by saying a separate document was emailed to us last year detailing the commission structure (which of course I cannot access as I no longer have access to my work email address). I would therefore like to know where I stand if possible. Obviously in my opinion the commission I made was effectively 'banked' and would be paid to me regardless of what happened this month.
However, I know of people that have left in the past and not been paid this money, so today I emailed my employer to establish the situation as there is nothing in my contract about this. He responded by saying a separate document was emailed to us last year detailing the commission structure (which of course I cannot access as I no longer have access to my work email address). I would therefore like to know where I stand if possible. Obviously in my opinion the commission I made was effectively 'banked' and would be paid to me regardless of what happened this month.
In my experience you have to be on the payroll at the time the commission is payable to stand any chance of getting it.
Payplans typically vary from time to time so aren't set out in the Ts&Cs of the job but are in a separate document.
In future always print and keep any document that affects your work or payment.
Payplans typically vary from time to time so aren't set out in the Ts&Cs of the job but are in a separate document.
In future always print and keep any document that affects your work or payment.
Im in car sales and when I left my job last April I still had some outstanding cars not handed over. I sold my deals to a collegue who then completed the handovers and got paid on them by the company. It was win win as he had some extra cars for his target and I got some money that I wouldnt of normally got.
M3Charlie said:
Im in car sales and when I left my job last April I still had some outstanding cars not handed over. I sold my deals to a collegue who then completed the handovers and got paid on them by the company. It was win win as he had some extra cars for his target and I got some money that I wouldnt of normally got.
Good result for you guys, but I bet the boss would be sacking two people not just the one if he knew you'd done that.I've since emailed my manager and he has sent a document to me which in all honesty I have never seen before. At the very bottom of the document states
"in the event of an employee resigning /termination of contract by the employer or employee. All commission payments due are forfeited. This is done to allow for any future cancellations/claw backs. "
However, I did not sign this document
"in the event of an employee resigning /termination of contract by the employer or employee. All commission payments due are forfeited. This is done to allow for any future cancellations/claw backs. "
However, I did not sign this document
That document might possibly not be enforceable even if you had signed it, as it is arguably an unfair restriction on your freedom to move jobs. Note also that it purports to apply even if the employer terminated your contract. What, if anything, was agreed about commission when you first took the job? What was the usual practice?
This decision may possibly assist you, but much depends on what you actually agreed, either expressly, or as a matter of inference from conduct.
http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/c...
This decision may possibly assist you, but much depends on what you actually agreed, either expressly, or as a matter of inference from conduct.
http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/c...
Edited by anonymous-user on Wednesday 2nd January 14:41
Breadvan72 said:
That document might possibly not be enforceable even if you had signed it, as it is arguably an unfair restriction on your freedom to move jobs. Note also that it purports to apply even if the employer terminated your contract. What, if anything, was agreed about commission when you first took the job? What was the usual practice?
This decision may possibly assist you, but much depends on what you actually agreed, either expressly, or as a matter of inference from conduct.
http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/c...
Many thanks for that - interesting read! This decision may possibly assist you, but much depends on what you actually agreed, either expressly, or as a matter of inference from conduct.
http://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/c...
Edited by Breadvan72 on Wednesday 2nd January 14:41
I have since found out that my manager has given everyone a copy of this said form today and asked them to sign it which would indicate there is cause for concern on their behalf.
Breadvan72 said:
Kermit power said:
I've certainly never heard of anyone getting paid commission after they leave in approaching 20 years in various IT sales roles, but good luck with it!
Perhaps your colleagues have been poorly advised. I suspect that I may have seen more contracts than you have, KP, and covering a wider variety of business sectors. Terms and practices vary widely, and even payments expressed to be discretionary can sometimes be enforced, at least to the extent that the discretion must not be exercised in an irrational manner.
Back to the OP: we still need to know more about what you actually agreed to, or how the contract was performed in practice. The answer to your question depends on your precise contract and circumstances - there's no generally applicable answer one way or the other.
Back to the OP: we still need to know more about what you actually agreed to, or how the contract was performed in practice. The answer to your question depends on your precise contract and circumstances - there's no generally applicable answer one way or the other.
Breadvan72 said:
I suspect that I may have seen more contracts than you have, KP, and covering a wider variety of business sectors. Terms and practices vary widely, and even payments expressed to be discretionary can sometimes be enforced, at least to the extent that the discretion must not be exercised in an irrational manner.
You may well be right. In IT sales, however, I think you'd struggle to find anyone who wouldn't agree that it's an absolute given.Kermit power said:
You may well be right. In IT sales, however, I think you'd struggle to find anyone who wouldn't agree that it's an absolute given.
Not so, in my own case my company pays commissions two months in arrears and provided they are a 'good leaver' commission is paid when it is due provided client invoices have been paid. That was always our policy and one of the reasons why we have managed to re-hire some of the better people we lost on a number of occasions.
It is very complicated. Basically when i joined the company 2 years ago they were trading under a different name. The company then changed names and the insurers they worked with and we were all given a different contract which stated nothing about commissiom. Some of us questioned this and were told another document would explain this in more detail. This document never arrived.
The way the structure worked is that anything sold in month 1 is paid at the end lf month 2. The amount owed is 1500quidish so yes, worth arguing over!
When I left my job in new car sales I had commission outstanding plus about 12 handovers left to do. My Boss and I sat down and had a chat about the outstanding commission and agreed on a figure that would be added to my final lot of wages. The leftover handovers I sold to another salesman who was nowhere near his target for the month. My Boss had no issue with this and its something that had always been done within our company (Ford).
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