Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.
Do you have an agreement from them stating that all sales must be concluded as well?
OK thank you, ***** ***** it with me. I will be in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.
Many thanks for your patience. Your rights should really be determined by the wording in your contract. If the employer wanted to only pay you for invoiced sales, rather than also include open orders at the time you leave, then really there should be a clause dealing with that specifically. In the absence of anything concrete allowing them to do so, they could also try and rely on what common practice is, how other leavers have been treated in the past and generally how your entitlement to commission is determined. You said that the usual payment terms are when the customer has paid the company and you then get paid yourself. If you are not going to be employed by them at the time the customer’s payment is made, the employer could indeed try to argue that you do not satisfy the usual criteria for how commission payments are done. So even in the absence of anything specific in the contract, the fact that you have not satisfied the usual criteria as you were not employed at the time means they could try and withhold commission for these open sales. It does not stop you from arguing your case to the contrary and trying to get them to honour these, but if you were to challenge this legally then you may find it difficult if the above conditions apply.
This is your basic legal position. I have more detailed advice for you in terms of the options you have should you decide to take the matter further, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you
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Hi Jonathan, it would not rally make any difference whether you are an employee or self employed. As mentioned, I have more detailed advice for you in terms of the options you have should you decide to take the matter further, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you
Thank you. Whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:
1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.
2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.
3. Before you consider starting legal action you may wish to consider sending a formal statutory demand. This is a legal request which asks the debtor to pay the outstanding debt within 21 days and failure to do so will allow you to bankrupt the debtor (if they are an individual ) or wind up the company (if they are a business). For the relevant forms to serve a statutory demand see here: https://www.gov.uk/statutory-demands/forms-to-issue-a-statutory-demand
4. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.
Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.