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Employer refusing to pay Bonus as per contract

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  • Employer refusing to pay Bonus as per contract

    Hi all,

    I have been working with this company for 4 years and i have asked my bonus calculation for 2018 as they "forgot to do it".

    3. Salary and Benefits
    A commission scheme is in place based on 2% over the net annual target of £550,000 gross, £467,500 net for 2018. A Company laptop will be provided (guidelines as laid out in the Staff Handbook).


    This is what its written in my employment contract that i signed in 2018 January.

    Because i run a series of online stores the employer states that the fees we pay to sell on these ( eBay and Amazon) is at 15% and this needs deducting from the total net turnover. Although this was never the case or mentioned anywhere in the contract or verbally agreed.

    So this is how my employer understands that sentence.

    2% over the net annual target 550,000 net. < which is ex vat but inc fees so its gross
    467, 500 net < which is net of 550,000 net less 15% fees.


    My understanding of that sentence is that i get 2% commission of anything over 467,500 net figure.




    Please let me know your toughs and opinions .

    Tags: None

  • #2
    Sorry forgot to add that instead of £2200 end of year bonus as per my calculation i only get 350.

    Comment


    • #3
      Sorry a little bit confused with your figures and the limited detail so here is what I think should be the calculation.

      1. Your target above which you would be paid commission is 550,000 net
      2. Take the figure total net turnover you achieved
      3. From this figure needs to be deducted 15% giving figure yy
      4. Figure yy- 550,000 = zz
      5. zz x 2% is the amount of commission.

      Not sure if that helps.

      I do my best to provide good practical advice, however I do so without liability.
      If you have any doubts then do please seek professional legal advice.


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      Comment


      • #4
        Hi, yes that is how they calculated my bonus.

        But deducting fees is not mentioned in the contract and it wasn't the case in the previous years when I have received a bonus on anything over my net turnover.

        What my argument is that it says 550 gross and 467 net, no mention of fees will be deducted.

        Comment


        • #5
          If the operation and criteria for the commission scheme is detailed in your employment contract signed by both parties then to change the way in which the calculation is applied would need to be informed to you and agreed in advance, since it is a contractual term.

          If however there is a separate commission policy, maybe contained within a staff handbook, which is subject to management discretion and non-contractual then changes in how it is operated or the criteria for commission payments can be made without an employee agreeing to such a change. However you should really have been notified of the change in advance of the implementation of it.

          If the commission scheme operated is a contractual term then I suggest that you have an informal discussion with your manager about the situation and if you do not get a satisfactory response then the next stage would be to raise a formal grievance.
          I do my best to provide good practical advice, however I do so without liability.
          If you have any doubts then do please seek professional legal advice.


          You canít always stop the waves but you can learn to surf.

          You are braver than you believe, smarter than you think and stronger than you seem.



          If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

          Comment

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