Retrospective Commission Change

[mark1979]

Employer wants to remove commissions payable on an add on product that we sell. Biggest issue is that they want to retrospectively remove it from deals done last month. We have been told today as we are about to get our commission reports for May.

Can they do this?

[ULA]

What does your contract of employment or commission policy say about making changes to the scheme. Although even if it does allow for changes to the scheme this should normally be done with notice in advance of the change coming into effect.

[mark1979]

The contract does allow for change although it makes no specific mention of how much notice they’ll give. Typically a new pay plan kicks in every January. This year we received it on December 17th

[ULA]

Have you spoken to your manager about why there has been no notice given of the removal of commission on that product.

I am also thinking that there may be a potential claim for unlawful deduction of wages. Commission payments count as wages and if you were reasonably expecting commission on this product to be paid this month, then since you had not been informed in advance of this element being withdrawn from the scheme, it not being paid could be considered an unlawful deduction of wages.

[mark1979]

The three of us affected by this are sitting down with him on Friday to discuss and hopefully agree a resolution

[ULA]

If needs be you can mention the latter part of my #4 post to him if the discussions are not going well.

Hope you do get a resolution. Come back and let us know how it goes.