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taratill
taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience:  15 years experience of advising on employment law matters
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On May 1st, 2014, I was asked to leave my role as a contractor,

Resolved Question:

On May 1st, 2014, I was asked to leave my role as a contractor, which was Resource Business Manager. I had been there for 12 months.
The CEO who told me, also stated to me that all commissions owed would be paid, along with a job that was coming to conclusion.
He stated, when chased,
” I have stopped your payments for commission. Unfortunately, after you left I carried out a full audit of the contractor area and found a number of anomalies, errors and breaches of policy.
As a result of the above, I will not be making a payment to you in respect of commission. “
I emailed requesting a meeting, then emailed again requesting detail of the above. I did not receive any replies.
On 30th July, I sent a recorded delivery letter stating the events and suggesting that I was about to take legal action. I sent this to the CEO and FD. On August 1st, I found out that the CEO had parted company with the organisation, and now the chairman was acting CEO.
I have been in communication with him and the FD, endeavouring to resolve this matter, and get paid. Their line, on 2/9, is as follows:-
1) The company reserves the right to vary the scheme from time to time to meet changing business requirements
2) Clause 2.5 – where a contract margin or the deployment of resources is below 20% then the commission payable and achievement against Target will be set by the Chief Executive
3) Clause 3 – Should the value of a contract turn out, for any reason, to be smaller than that recognised in the year for commission payment, then the appropriate reclaim may be made
They have altered the way that commission is calculated, resulting in a payment to me of some £500, as opposed to the c.£7.5k I was claiming based upon how commission was being paid before. The above clauses are in my commission plan, that was signed by myself in February.no notification of this change was given.
Am I right in thinking that I am entitled to what was initially agreed?
Many thanks
***** *****
Submitted: 2 years ago.
Category: Employment Law
Expert:  taratill replied 2 years ago.
taratill : Hello my name is ***** ***** I am happy to help you. Are the quoted clauses from the contract you were working under at the time?
Customer:

Yes they were

taratill :

Did you get anything in writing from the CEO to say that all the commissions would be paid at the time.

taratill :

Are you saying that they are relying on the 1st clause to retrospectively change your commission scheme?

Customer:

No, nothing in writing from the CEO to say that all the commissions would be paid. They are relying on all 3 clauses, I think.

taratill :

On the face of it if the clauses are in your contract then they can attempt to use them to avoid making the payment. I cannot comment on the relevance of clause 2 and 3 as they are to do with the performance of the business and the contracts you were working on. They would need to prove that these apply to reduce the commission payable to you. In order to prove clause 1 it is my view that you would have to be given notice that the way that commission is being paid was being varied.

taratill :

The fact that you were told that you would receive full commission is contractually binding but the fact that you have no written proof of this may cause you an evidential problem if it is denied.

taratill :

I would ask them to demonstrate 1. When you were informed that the scheme was being varied? 2. Demonstrate that clauses 2 and 3 apply by sending you details of the financial reasons they say they do. 3. Ask them to confirm that they are, in any event contractually obliged to pay you because you were told that you would be paid and this is contractually binding.

taratill :

You can state that if you are not paid you will have no alternative but to bring a small claim against them. They will then have to prove that they contractually have the right to withhold the commmission.

taratill :

If you have any further questions please do ask.If I have answered your question I would be grateful if you would take the time to rate my answer. thank you and all the best.

Customer:

Thanks. The first and only time I have been made aware that the commission payment method has differed, was in an email on August 20th

taratill :

Well that is retrospective and does not apply to the period that you were earning commission under. I think this is a try on. I would write to them in the way I have suggested and raise a claim. I would imagine they will settle rather take this through the court and risk paying your costs.

taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience: 15 years experience of advising on employment law matters
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