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Commission being paid incorrectly ?

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  • Commission being paid incorrectly ?

    Hi guys,

    New to this here, I am currently going through a dispute with my employer.

    I am in a Sales Job, and my contract says, that I am to be paid "10% RGP" of the product that I am selling.

    I recently calculated the Gross Profits of the products that I have sold in 2017 and 2018 and came to the conclusion that I have been underpaid by £1,500 +.

    After initially questioning the calculations with the managers they told me that they were taking 20% off of the Gross Profit to account for Business VAT expenses on the GP, then taking off the reconditioning costs of preparing the product, I questioned this and said that that meant that they were paying on Net Profit of the product and not Gross Profit as per the Pay Plan.

    I then emailed HR and the Head Of Business, and they said that they would investigate and come back to me, I week later I get called in for a 'chat', and I'm advised by the Head Of Business that their interpretation of RGP is Retained Gross Profit, to which I said well that still doesn't make sense because Retained Gross Profit still wouldn't account for VAT, Net Profit would, and even if it did mean Retained Gross Profit, it's not ? I was told again that in our RGP we take VAT out.

    I would massively appreciate it if someone could shed some light on this and advise if I am right in my thinking..

    Many thanks in advance.

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  • #2
    How long have you been under the same contract and has the commission been calculated the same way throughout ?
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    • #3
      Since January 2017, it's been paid the same.


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