Should commission still be paid to sales consultant if no longer with company?
By Daniel Lublin | December 24, 2011
I am a full time sales consultant paid partially by salary and the rest on commission. Commissions are paid once the product ships. There will be approx. $30k worth of commissions that would be paid if still working. Should this money still be paid out to me?
Daniel Lublin answered:
The issue depends on (a) what his contract (if has one) says about commissions payable following departure, and (b) what the company's practices have been.
The common law, which is what prevails in the absence of a contract that addresses this scenario, dictates that if the employee was previously paid once the product ships, then he should be paid the outstanding commissions if the product was shipped despite the fact that he is no longer employed.
A review this employment agreement or other documents detailing the company's requirement to pay commissions, would assist the analysis.