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Thread: Employement Law

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    Employement Law

    Hello!

    I changed jobs 5 months ago leaving behind around £32k of unpaid commission. Due to the rules my previous employer imposed they say that any commission owing once I have left are no longer mine. As such I asked for a detailed breakdown of every deal closed by me and how much I have been paid as I know for a fact they were just paying me a set amount of commission each month knowing that I was owed more.

    I have been hassling them for 5 months now and they keep fobbing me off.

    Does anyone know if there is any laws about outstanding commission and how soon they need to provide information on request?

    Thanks,

    Wilksj01

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    There are rules about what they can do and what they can't do. Generally, withholding payments puts them in a very dodgy position, and leaves them open to you taking them to an employment tribunal.

    You say you've been "hassling" them. In writing, or by phone?

    By the sounds of it, you ought to be doing everything you do in writing by now, and keeping notes of dates, times, people spoken to, etc, if you can. If you're going to end up taking them before a tribunal, you need to read up on the details, and to understand the implications, and procedures. A good start is www.employmenttribunals.gov.uk

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    Treasure Hunter extraordinaire herulach's Avatar
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    The first place to start is probably your old contract. They may be entirely right, although i think it would be unlikely

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    Go direct to the citizens advice bureau and have a word.
    What we share with everyone is glum, and dark...

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    Have a word with ACAS. This is exactily what they are here for.
    However, you have left it for too long. After 3 months getting a tribuneral rather than a regular court case is difficult at best.
    "In a perfect world... spammers would get caught, go to jail, and share a cell with many men who have enlarged their penises, taken Viagra and are looking for a new relationship."

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    Agent of the System ikonia's Avatar
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    Correct me if I'm wrong (I can't find anything to refresh my memory on the forum) but didn't you want to leave your company and parted under "dubious" terms because you had other business prospects to go to. (this could be another user and not you as I can't find anything quickly in your previous posts). Wasn't there something along the lines of working for the new company while on your notice/gardening leave from your old employer ?

    FYI: I 'm also chasing up your PM now find out whats going on.
    It is Inevitable.....


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    Treasure Hunter extraordinaire herulach's Avatar
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    Quote Originally Posted by ikonia View Post
    Correct me if I'm wrong (I can't find anything to refresh my memory on the forum) but didn't you want to leave your company and parted under "dubious" terms because you had other business prospects to go to. (this could be another user and not you as I can't find anything quickly in your previous posts). Wasn't there something along the lines of working for the new company while on your notice/gardening leave from your old employer ?

    FYI: I 'm also chasing up your PM now find out whats going on.
    http://forums.hexus.net/showthread.php?t=106148

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    Agent of the System ikonia's Avatar
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    thats the rascal,

    yup, I think we discussed it all in there that you'd broke the terms of your notice so voided your work contract (from scanning the thread and not re-reading it).
    It is Inevitable.....


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    Agent of the System ikonia's Avatar
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    from the current thread your said

    I changed jobs 5 months ago leaving behind around £32k of unpaid commission

    From the previous thread you said

    They are now refusing to pay me the last months wages and commission which equates to about £4,000
    Thats a pretty big difference ???

    This has all dragged on for 5 months ? I though you'd just agreed to draw a line under it and move on.

    If this is in reference to the previous thread, the harsh thing is, there is only yourself to blame for working for two companies at once.
    It is Inevitable.....


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    Hi Ikona,

    Thanks for your reply. The 4k in my previous post was regarding the months wages and commission they were stopping because I had started work with my new employer. The reason all this has come about now is that I asked for a detailed breakdown of commission payments I felt that they didn't know for which customers had paid and when.

    Sure enough after 5 months of hassling them for it (at least 2 e-mails a month) they still haven't provided me with anything but excuses. The figure of £32K comes from the end of year figures they sent me in November 2006 which listed every deal I had closed that year and the amount waiting to be paid to me.

    I am happy to draw a line under this as long as they can give me proof that they have calculated my final commission payment properly.

    Their rules state that I am entitled to any commission owed on deals paid by the customer up to the day I left the business however they have not been able to give me a detailed account of what customers have paid, when they have paid and how much they have paid me in commission which is a bit concerning.

    Funnily enough I have just heard that another employee who left shortly after I did is taking them to a tribunal as they are withholding commission from him on a deal that cancelled due to poor service. Their rules also stated that if a client cancelled due to poor service, the full commission would still be payable.

    Do you think I am just being petty asking for a detailed breakdown or am I within my rights?

    Thanks,


    Wilksj01

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    Agent of the System ikonia's Avatar
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    I think it depends on a lot of things.

    to be honest I can't imagine a situation where you would do 32K's worth of work as commision that seems an awful lot and I mean with the utmost respect, the discussion I've had with you about your previous work did not suggest to me you where in a position that would be paying at 32K's worth of work. I wouldn't let 32k's worth of work go IF I was %100 in the right, eg: we've read your situation with regard to how you left but its not clear what happened with that, if you left and they withheld payment due to your gardening leave breach, I'd be inclined to draw a line under it because at a push they an do you for gross-missconduct, and as mentioned in the previous mails, courts and the like against employers can make you unemployable. That said 32K is not to be sniffed at.

    Its all down to your personal situation and how much your short term and long term goals will be effected by this.

    Seek employment law advice, but make sure you are %150 upfront with the details and facts, and don't try to sway things in your favour as to the lawer chap in your corner it doesn't matter, but the truth will come out and if the lawer chap isn't prepared for it, you'll lose......badley.
    It is Inevitable.....


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    when you say 32k worth of commision, you mean the stuff you sold totaled 32k and you owed the percantage of what the commision is?.

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    Ok here goes, it is often hard to detail everything without going into war and peace but I will try to fill in the blanks...

    My job title is officially an IT consultant however these days that means technical sales person. At my last place of employment I was targeted to bring in £240,000 worth of profit over a 12 month period. I finished the year on £320,000 worth of profit. My commission structure was that in each 20 day month I had a £20k profit target with a £4k breakthrough. I would earn 15% commission on everything I did above the £4k up to £20k and the 20% thereafter so effectively if I hit target I would earn £2,400 before tax each month.

    Every month I did at least £20k profit and in one month I did £80k. This meant I should have received £14,400 before tax. The total for the year should have been £40,800 on top of my salary.

    To explain, the solutions and services I was dealing with were often £100K-400K deals hence the size of my targets etc. I was paid on what they termed as a paid on paid scheme and so I would often get 2-3 months commission at a time due to the size of the projects.

    By the companies rules, if you left the business and they hadn't been paid by the client then you wouldn't get paid regardless of if they were paid after you left. I am ok with this rule as I wouldn't want them retracting the commission payment if something went wrong after I left.

    My issue comes from how they have calculated what I have been paid so far as they don't to appear to have any records on what customers have paid vs. what they have paid me.

    In terms of how much it effects me in the short term, well not very as I am now in my new job and earning money again but it's better in my pockets than theirs!

    Sorry to bore you all with how I earn my commission

    Wilksj01

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