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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47368
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Hi I work in sales and have been made redundant with 70%

Resolved Question:

Hi
I work in sales and have been made redundant with 70% of my colleagues. As part of my employment contract I had guaranteed commission for the 1st two quarters, one of which was stated as recoverable draw but only upon "termination" as per my employment contract.
This recoverable draw has been taken out of my redundancy pay. Are they within their rights to do this if it is redundancy not termination?
Kind Regards
Jeremy
Submitted: 2 years ago.
Category: Law
Expert:  Ben Jones replied 2 years ago.
Ben Jones :

Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Is the term termination defined anywhere in the contract?

Customer: Hi Ben
Customer:

The term termination isn't defined in the contract but referenced in relation to terminate dates and reasons for termination etc. Redundancy is not mention in the employment contract.

Customer:

My employment offer letter details the guaranteed commission and recoverable draw but only references this being recoverable by the company in the case of termination

Customer:

Hope that helps, let me know if you need anything else

Customer:

Should your employment terminate, then you will refund any unearned portion of the
recoverable draw.

Customer:

from the contact

Customer:

The confirmation of the dicussion letter as per the chat with the HR lady says they are making me redundant

Customer:

but is listed as a reason for termination in the letter

Ben Jones :

Hi, sorry I was offline by the time you had replied. Whilst I understand your argument, redundancy is still going to be classified as termination because it results in a termination of your employment. In fact it is one of the 5 fair reasons for termination of employment defined in the Employment Rights Act 1996 which include conduct, capability, redundancy, illegality or some other substantial reason.

So even if your employment is being terminated by reason of redundancy this is still going to be treated as a ‘termination of employment’ because your employer is issuing you with notice to terminate your employment with them.

Hope this clarifies your position? If you could please let me know that would be great, thank you


Customer:

Hi Ben

Customer:

This does indeed clarify my position. I had another question which relates to my personal travel being reimbursed by the company. We were due to have a sales conference next week in NY with all my travel and flights paid for by the company. I am obviously not going now but I paid for some non refundable flights for my partner to fly to New York to stay with me whilst I was at the conference. As the trip has now been cancelled I am now personally out of pocket and they wont reimburse the money, just wondered where I stand legall?

Customer:

Thanks

Customer:

Jeremy

Ben Jones :

Hi Jeremy, the news won't necessarily be good here either I'm afraid. It was your own personal decision to include your partner in your plans to travel to NY and I presume the company never required your partner to attend as well. This is unfortunately a risk you would have taken personally when you decide to include her.

Ben Jones :

As such they would have no legal obligation to reimburse you for the tickets you bought for her on the assumption the trip was going ahead. Had you bought tickets for yourself for a work-related trip, which was subsequently cancelled, then you could have expected them to reimburse you for this as it was a work-related matter, but they cannot be held responsible for the costs incurred on bookings for family members of friends when this was not a requirement of the trip and was done on your own accord.

Ben Jones :

Hope this answers your follow up question?

Customer:

Thanks Ben, that helps and clarifies.

Ben Jones :

you are most welcome, all the best

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