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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 49787
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I am in sales, have over achieved against my targets but am

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I am in sales, have over achieved against my targets but am being made redundant having just reached 5 years with the firm. The company that employs me is wanting me to sign a compromise or settlement agreement. There was not a consultation and there are employee's who do the same job but have not achieved target that are unaffected. During the course of my employment I have won a considerable amount of business. The contracts won are multi year contracts and whilst one receives recognition against each contract once the initial invoice is cut (generally for service transition and transfer of responsibility) the commission paid on annual ongoing fee's is aligned to billing.
The commission scheme ties successful employee's to the business as leaving on ones own accord would mean walking away from, in some cases, substantial sums. Given my predicament (redundancy) am I entitled to the commissions earned during the course of my employment but that would be payable beyond the end of the notice period? Had I remained in the employ of my employer the values would have been paid in full
Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today. Are they offering this amount and if not - have they said why? Please note I am mobile today so may not be able to reply immediately, thanks
Customer: replied 1 year ago.
They are not offering to pay monies earned and owing beyond the notice period.
Thank you. The first point to note is that if they are asking you to sign a settlement agreement you cannot be forced to do so. You should only go down that rote if you are happy with what is on offer. You are after all giving up your rights to claim against them and challenge your dismissal or anything else relating to your employment with them so you must ensure that you get what you are due or what you would be happy to walk away with in return for giving up your rights. So you can negotiate with the employer over this and make it clear that you have concerns about the redundancy process and that the dismissal is likely unfair so you do have rights to consider an unfair dismissal claim. If you do not sign a settlement agreement you are able to do this and the employer would certainly not want to be on the receiving end of a tribunal claim which they will have to defend and spend time and resources on. So it would be in their best interests to try and agree a settlement with you. So you can negotiate with them to include the commission payments as part of the settlement deal and then they would know that they do not have to deal with a potential claim by you. Be aware though as you cannot be forced to agree to a settlement agreement neither can they so they can refuse to do this and then you will have to consider taking this further. Also the policy you need to check if there are conditions that state you must be in employment at the time it becomes payable as that will be relevant too. If there are no such conditions and the only one is that it excludes those who leave on their own accord (not including redundancy) then you could be entitled to this regardless. This is your basic legal position. I have more detailed advice for you in terms of the steps you can take to pursue your commission if you are entitled to it and it is not paid, 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 I no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you
Hello, I see you have read my response to your query. Please let me know if this has answered your original question and if you need me to discuss the next steps in more detail In the meantime please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. The question will not close and I can continue with my advice as discussed. Thank you
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Thank you. If you are entitled to the commission and it is not paid then this potentially amounts to an unlawful deduction from wages, which is made illegal under the Employment Rights Act 1996. In order to try and resolve this, the employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow. If the employer does not return the money as requested, the following options are available:1. Employment Tribunal - the time limit to claim is only 3 months from the date the deductions were made. To make the claim, form ET1 needs to be completed and submitted - you can find it here: County Court – this is an alternative way to claim and the advantage is that the time limit is a much longer 6 years and is usually used if you are out of time to claim in the Tribunal. The claim can be made online by going to: ***** ***** by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.
Customer: replied 1 year ago.
Many thanks Ben that is great and allows me to formulate a strategy
You are welcome, all the best