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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 47354
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Hi, My company want to dramatically reduce my potential earnings

Resolved Question:

Hi, My company want to dramatically reduce my potential earnings by changing my commission structure should I agree?
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. How long have you worked there for?

Customer:

almost 10 years

Ben Jones :

is the current commission structure a contractual one?

Customer:

yes

Customer:

They have realised if I reach my target which it looks like I will they will have to pay me a lot of money

Ben Jones :

so they will change it for the future or will it affect the current earnings?

Customer:

they want to change it right now and back date it to August 2013 which is the start of our financial year and then it will reduce even further for the next financial year i.e. from August 2014

Ben Jones :

ok let me get my response ready please

Customer:

ok

Ben Jones :

These proposed changes would amount to a change to our contract of employment. There are a few ways in which an employer may try and make changes to an employee’s contract of employment. These are by:


• Receiving the employee’s express consent to the changes.


• Forcefully introducing the changes (called 'unilateral change of contract').


• Giving the employee notice to terminate their current contract and then offer them immediate re-engagement under a new contract that contains the new terms.


 


If the changes are introduced without the employee's consent, then the following options are available:


 


1. Start working on the new terms but making it clear in writing that you are working ‘under protest’. This means that you do not agree with the changes but feel forced to do so. In the meantime you should try and resolve the issue either by informal discussions or by raising a formal grievance.


 


2. If the changes fundamentally impact the contract, for example changes to pay, duties, place of work, etc., you may wish to consider resigning and claiming constructive dismissal. The resignation must be done without unreasonable delay so as not to give the impression that the changes had been accepted. The claim must be submitted in an employment tribunal within 3 months of resigning and is subject to you having at least 2 years' continuous service. You would then seek compensation for loss of earnings resulting from the employer's actions.


 


3. If the employment is terminated and the employer offers re-engagement on the new terms that could potentially amount to unfair dismissal. However, the employer can try and justify the dismissal and the changes if they had a sound business reason for doing so. This could be pressing business needs requiring drastic changes for the company to survive. If no such reason exists, you can make a claim for unfair dismissal in an employment tribunal. The same time limit of 3 months to claim and the requirement to have 2 years' continuous would apply.


 


 

Customer:

They are hoping I will agree amicably and I guess unless I want to leave the company (which I don't) I don't have many options?

Ben Jones :

well it is also possible to make a claim for the lost money without having to leave first

Customer:

How would I do that?

Ben Jones :

it would be either by making a claim in the employment tribunal for unlawful deduction of wages or the county court for breach of contract

Customer:

would the end result still be me leaving the company?

Ben Jones :

no, they can order the employer to reimburse you what you have lost

Customer:

I don't suppose I'll be the most popular employee if I do that?!

Ben Jones :

no that is a risk that is attached

Customer:

thanks for your help its been really useful

Ben Jones :

You are most welcome. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and feel free to bookmark my profile for future help:



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