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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3839
Experience:  Solicitors 2 years plus PQE
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Hi Ben, my company has created a new commission plan based

Customer Question

Hi Ben, my company has created a new commission plan based around 2 types of services we sell. One is capex to drive up front cash and the other monthly revenues. I work in telco.
We have a new CEO and the targets for new FY have increased dramatically. For example the capex target for me individually now equates to the same target 5 people shared last year!
My main issue however is a termination clause that states if I under perform (less than 50%) 2 quarters running they can end my employment. I am reluctant to sign such a clause and wanted to see if it would be enforceable. I have worked here since November 2012.
Thanks, Andy
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.

Thank you for your question and welcome.

My name is AJ and I will assist you.

Having a right of termination based on your performance would be enforceable as you are effectively taking the time to consider it and negotiate it. Everyone is free to agree their own contractual terms

Any termination should really have a notice period and ideally you should insist that the notice period is paid in lieu, so you do not have to carry on working there if they choose to terminate.

This right of termination will of course be without prejudice to any employment claims you might accrue for example unfair or wrongful dismissal. As you have been employed after April 2012 then your right to claim unfair dismissal will only accrue after November 2012 as it requires 2 years service.

You have consider other factors here - are they likely to try and force you out if you do not agree to these terms? Also can you negotiate a long notice period for example 6 months - effectively that gives you a salary for six months to find a new job?

I look forward to hearing from you.

Kind regards