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taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6430
Experience:  15 years experience of advising on employment law matters
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I have a question regarding commission payments on a new

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I have a question regarding commission payments on a new employment contract - a full time UK position. My role involves a base salary plus commission which is based a percentage of the (annual recurring) revenue that I bring in. In terms of timing , if I close a deal in April , and assuming the client pays the invoice, I receive all commission payments in the month after quarter end, i.e July. In the contract they state that if I leave, I will forfeit any commission payments owed (even if the invoice has been paid) and that they can change/discard the commission plan at any time, even retrospectively. I am not particularly happy about this and am wondering if it is standard practice / legal under UK/EU employment law? Here are the relevant sections: Many thanks!!(c) If the Employee leaves the Employer for whatever reason, or the Employee or the Employer has given notice of termination, he will lose his entitlement to receive any further commission under the scheme including any accrued but unpaid commission.4.3 The Employer reserves the right in its absolute discretion to terminate or amend the commission arrangements applicable to the Employee without notice at any time or to exclude the Employee from participation in any commission arrangements without giving any reason. Participation in any commission scheme or schemes in any year does not oblige the Employer to extend or repeat that participation thereafter.(e) The Employer reserves the right to amend, alter or cease to provide (without compensation) any benefit (including any commission plan, bonus or incentive based pay) at any time.
Hello my name is ***** ***** I am happy to help you today. I do not think that it is standard practice but it is legal provided you are paid at least the national minimum wage in respect of hours you do work. Many employers , rather than not paying at all, distinguish between good leavers and bad leavers, paying commission only to those who are made redundant or are leaving for other acceptable reasons. As employment contracts are subject to individual negotiation I would suggest you go back to the employer and ask for clarification on this / for the provision to be removed. 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.
Hello is there anything further you would like to know as I note you have not yet rate my answer which is an important part of the process?
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Customer: replied 1 year ago.
Hi - I just rated the answer 5 star. So to summarize, although not standard practice in the UK it is technically legal to withold commission payments even if they have been technically earned.
Thank you for the rating. The summary is correct so long as you are being paid the national minimum wage in respect of the hours worked the rest is down to the contract between you and the employer. I do not think that it is necessarily common practice to withhold payments for leavers though.