In the current business world, commissions are incredibly important. In fact, some people live from commission to commission due to the fact that their base salaries are too low. Many popular companies use this business model to save costs, as it means they don’t have to pay their employees unless they’re successful. It’s completely legal, but it is sometimes frowned upon.
Naturally, due to the nature of this model, disputes are very common. Every year, thousands of employees file cases against their companies due to having their commissions withheld or unfairly reduced. Because you’re reading this guide, it’s fair to assume that this has happened to you, too.
If your sales commission hasn’t been paid and the deadline for the payment is long behind, then it’s time to take action. Read the steps in this guide for all the help you need!
Gain a Legal Understanding of Your Situation
First of all, you need to understand the legal aspects of your situation.
For example, many employees quit their jobs before receiving their commission payments at the end of the month. Naturally, this raises a question: can an employer withhold the commission if you quit?
The answer is yes (depending on the specifics). If an employee voluntarily resigns prior to earning a commission, they are likely not entitled to payment for it – but this will depend on the original employer’s commission plan.
However, in other circumstances, such as when an employee gets their contract wrongfully terminated, they have a greater chance of receiving their sales commissions in full.
Speak With the Other Salespeople
The likelihood is that you don’t work alone – instead, you work with other salespeople. This might be on the road, or in a big office somewhere. Whatever the case may be, you must communicate with them to understand if they haven’t been paid their commissions, too.
If this is the case, then it might point to something obvious such as a banking problem on behalf of your employer. After all, banking glitches do happen.
However, if your commission is being withheld and your manager has been up-front with you about this, then you’ll know for sure that it isn’t an accident.
Teaming up with your employees is a good idea, as it strengthens your case when you both have evidence.
Collect an Evidence File
You need to collect evidence: fact.
From emails to previous payslips, make sure to collect all your relevant business documents and communication messages.
For example, your manager might have emailed you contrasting reasons why they’ve not paid your commission on different dates. In a court of law, this is good evidence to show that there is dishonesty and inconsistent reasoning on behalf of your employer.
Research Your Employer’s Legal History
Google is your best friend when it comes to uncovering useful information regarding your employer. Online, you might discover that your company has a reputation for withholding commissions payments (something you might not have had previous knowledge of). If this is the case, you can pass this evidence onto your legal team.
To conclude this guide, make sure you stay calm. You might desperately need your commission payment in order to cover the bills or pay outstanding debts, but you shouldn’t let this affect your behavior. Also, don’t go public with your case. Instead, allow your legal team to guide you moving forward!
To read more on topics like this, check out the Business category