VIC Employer docking Sales Commission

[Frank Mullally]

I work in sales. I work in a medium to large business. My income is based on salary plus sales commission. My sales commission make up a significant amount of my income. Recently the company has added a new layer to the sales commission payment where they can dock sales commission by a minimum of 10% if your sales call review score is below 95%.

To the best of my knowledge there is nothing in my contract that states that the can be done. Does my employer have the right to do this under employment law?

Our commission has frequently changed without consultation. My employer will also will claw-back commission paid on sales that cancel within 12 months. They seem to have too many ways to take back commission and I do not know if I have the right to not allow this to happen. Any advice would be appreciated.

 

[Paul Cott]

I work in sales. I work in a medium to large business. My income is based on salary plus sales commission. My sales commission make up a significant amount of my income. Recently the company has added a new layer to the sales commission payment where they can dock sales commission by a minimum of 10% if your sales call review score is below 95%.

To the best of my knowledge there is nothing in my contract that states that the can be done. Does my employer have the right to do this?

Our commission has frequently changed without consultation. My employer will also will claw-back commission paid on sales that cancel within 12 months. They seem to have too many ways to take back commission and I do not know if I have the right to not allow this to happen. Any advice would be appreciated.

Frank, unless it is in your contract and or you consent to the variations then they are generally not enforceable - the claw backs that is.

The trick is to say something about it if you wish to challenge them.

Hope that helps.

 

[Ivy]

Hi Frank,

I agree with Paul in that usually your employer cannot change the terms of your contract without your consent. I assume that you have looked over your contract thoroughly, however does your workplace have an enterprise bargaining agreement that complements your individual contract? If so, you should also have a thorough read of it to see if there are any clauses in regards to commission payments.

If you don't have an enterprise bargaining agreement, is your contract under an award?

If there is an HR manager or supervisor in your company that you feel comfortable talking with, I think you should contact them and ask them the basis under which they are trying to make these changes given that there is nothing about it in your contract.

After this point, if you need further assistance because you believe your company isn't acting fairly and legally, have you considered contacting/ getting a membership with your relevant Union?

I hope this helps.

 

[Frank Mullally]

Thank you Paul and Ivy! I will have a chat with HR in the morning. I don't want to make waves but the docking of commission seems completely unfair. Especially when a mark down might be and small administrative error. I will find out what agreement I am currently on which should answer most the questions. I have the choice to go to fair work, but if it is deemed that my employer is in breach it could mean a $50,000 fine. I would rather avoid that.