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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50148
Experience:  Qualified Solicitor
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I have just started in a new sales role, in the terms & conditions

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I have just started in a new sales role, in the terms & conditions of employment I have received it states "your sales target is set at £40,000 per month. If targets are not met we will review, 3 months missed targets or an average of 50% over a 12 month period will result in termination of employment" Is this legal? Or is there a precedent in employment law that would support an employment contract on this basis. For me this would in effect mean that I actually only ever really have at any time a 3 month rolling contract of employment. All answers or advice will be most gratefully received.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. Are you an employee rather than self employed?

Customer: Hi Ben , I am an employee
Ben Jones :

The clause itself is not illegal and can be implemented in a contract to determine the requirements of the job and what is expected of you. However, it is not as simple as having such a clause and the employer claiming they an dismiss you at any time if you do not meet the targets that are set within. Employment law dos provide you with certain rights, the main of which is protection against unfair dismissal, meaning that to fairly dismiss you an employer must show that there was a fair reason for doing so and also follow a fair procedure. So for example in the event of not reaching targets they would need to offer additional training, look at the targets and how realistic they are and so on. The issue is that such protection does not kick in until you have been employed by an employer for at least 2 years. So until then, you can be dismissed at any time and more or less for any reason, whether such a clause exists or not. But once you reach the 2 year threshold, even with such a clause in place the employer will need to follow a fair procedure and cannot just rely on the contract to dismiss you

Customer: Thanks Ben, one last thing, I am currently still in a 3 month probation period and have as yet not signed a contract, this clause seems to me to be very arbitrary , do you think there is a reasonable case to be made for this clause to be more defined ?
Ben Jones :

There is nothing stopping you from trying to negotiate a rewording to make it clearer, but the employer does not have to agree to this. As mentioned you have no unfair dismissal protection yet so they could easily say you either take it as it is or leave it, so you could ask for the rewording but if they refuse don't push them too much as they could easily terminate your employment if they believe you are being difficult

Customer: Thanks for the advice, much appreciated.
Ben Jones :

you are most welcome, all the best

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