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Commission retained for 6 months?

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  1. #1

    Join Date
    Nov 2009
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    76

    Commission retained for 6 months?

    I was offered a sales job today with a base salary and a commission component to it. What they explained to me is that in order to retain staff, they choose to pay out 50% of my commission for the month, on month's end. The remaining 50% would be paid six months later. I guess this is a popular way of retaining staff, however, based on this fact, does that mean I am not able to recover my hard earned commission for the last six months I am with the company? Is this legal for them to do that, since it should be my money they are delaying to pay?

    any help would be appreciated and thanks in advance!


  2. #2

    Join Date
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    There are no law about how long the commish can be retained.

    What makes it "legal" is what you accept and sign on. It is only your money after you've accepted and signed on the contract and earned it and its due as per the contract that you accepted and signed on.


  3. #3

    Join Date
    Apr 2004
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    Agree with Shri
    Only accept what you can accept. If its not for you then amend it. If that's not accepted by the company then walk away.


  4. #4

    Join Date
    Feb 2010
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    I haven't heard of it but only been here 3 months. I know of it in China but this is based on base salary and more like 15-25% holding and then paid on performance.

    Not sure how they determine the concept of 'to retain staff'. If if you do leave, give the appropriate notice etc, are you still entitled to your commissions? If that is the fact then how do they determine this can retain staff? I think this beats the purpose of what they are trying to achieve.

    The way that companies retain staff is having a good working environment, good people to work with, good benefits and a great product to sell not holding back commissions. Now I think about it if they are doing this then they must have high turnover and this must be one way of trying to hold onto people.

    Just some general thoughts without knowing what the company is and how reputable they are in their given market.


  5. #5

    Really? But there's law governing when salary has to be paid - within 7 days of the designated pay cheque day. So if commission is considered as part of salary, then shouldn't it be paid within 7 days?


  6. #6

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    Have it in your contract 'Commission paid X days after receipt of payment from customer...' - or whatever similar suitable words.


  7. #7

    Join Date
    Feb 2010
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    64

    Agree with all the above.

    Any sales role naturally has a high turnover. High turnover, means high recruitment and training costs, so in order to keep their current staff to reduce those costs, they need some form of retention mechanism, which in your case 50% of commission.

    If you write what Load Toad states, and you commence in your role without them saying anything, in theory it is deemed that they have accepted what you have written. But having them to apply that is a different matter, and of course you would still be in your probationary period.

    Either way, if you commence with them, you will have to accept that no matter when you leave, you will always lose your last 6 months commission.


  8. #8

    Join Date
    Aug 2009
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    The law can override agreed terms of a contract in certain circumstances. Although you did agree to it, it sounds a bit oppressive and worth investigating further if you feel that uncomfortable with it.
    Posted via Mobile Device


  9. #9

    Join Date
    Jun 2005
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    It's no different from the bankers (or others) being paid in stock options with vesting dates 6-36 months in the future. It's a retention device and perfectly legal. If the figures don't work for you then don't sign.


  10. #10

    If you can just ask whether the last 6 months' of commission is yours or not. As they may say it's there to recoup any training costs, etc., that they've provided you i.e. it's part of their cost structure.

    Yes, they can hold on to it for 6 months. It's whatever you agree with them. Though if the conditions were totally unfair you could try taking them to court as an 'unfair contract'.

    Last edited by chris_in_hk; 22-04-2010 at 03:46 PM.

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