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luvadealme

Work comp plan change - advice needed

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Dear All,

I need some advice. I work in a sales role and currently half my take home is based on commissions. I close multi year deals and get a small % of the invoice payment, when they are paid, typically we bill annually/semi-annually or quarterly, we get our commissions quarterly.

I have been told that this year (after a month has almost passed) we are no longer going to be in a commissions plan and are moving to a bonus plan.

I have not seen the specifics yet, but my assumption is that the % per sale is being reduced (cost cutting!).

I have also been told that the new plan will supersede the existing comms plan, which they find too time consuming to track.

Hence I have concerns about all my future 'banked commissions' for multi year deals closed in past 2 years.

Where do i stand legally on this? Do I have to sign the new plan?

Can I refuse? If so, can it be deemed that they have failed contractually to uphold my previous comms plan and in effect I can walk over to a competitor with the comp clause made redundant by their actions?

All advise appreciated.

Thanks

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No idea. What does your contract say about what would happen under the current commission arrangements if you left? 

In general terms, if your employer does you over, then you may have a case for constructive dismissal.  Your best bet is probably to book an initial consultation with a solicitor who specialises in employment law. 

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31 minutes ago, SpectrumFX said:

No idea. What does your contract say about what would happen under the current commission arrangements if you left? 

In general terms, if your employer does you over, then you may have a case for constructive dismissal.  Your best bet is probably to book an initial consultation with a solicitor who specialises in employment law. 

See my bold! One of those saved my ar$e once.

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We had/have the same thing where I work.

In our case %UK turnover => Performance bonus with top down target setting

The idea of the latter being that it is usually a fixed cost to the company because your manager's job will be to make sure you come in on or around OTE averaged over a 24 month period. Basically a very time intensive sham to create the illusion that if you work hard you will earn more when in fact you won't because your targets will just go up and the company makes more money.   There are advantages and disadvantages to each system.

For me I accepted the change quite readily for two reasons:

1 )  My terms became more favourable (at least in the short term) with my OTE being about £10k more than I was averaging on the old contract.

2 ). If my company tried to screw me I would just leave.  In sales most people within a specific industry know each other pretty well.  I reckon it would be more damaging to my career in the industry to take my employer to court than just to leave and find somewhere better.  If I was prepared to set sail for a new industry perhaps I would look at it differently.

My 10 cents:  Sit down and work out how much better/worse off you think you will be and then if necessary take that information to your employer and explain your grievance. If they fob you off and you aren't happy take your contract of employment and your new contract to a solicitor to understand your legal options.  Make your final decision from there.

Good luck.

 

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10 minutes ago, libspero said:

We had/have the same thing where I work.

In our case %UK turnover => Performance bonus with top down target setting

The idea of the latter being that it is usually a fixed cost to the company because your manager's job will be to make sure you come in on or around OTE averaged over a 24 month period. Basically a very time intensive sham to create the illusion that if you work hard you will earn more when in fact you won't because your targets will just go up and the company makes more money.   There are advantages and disadvantages to each system.

For me I accepted the change quite readily for two reasons:

1 )  My terms became more favourable (at least in the short term) with my OTE being about £10k more than I was averaging on the old contract.

2 ). If my company tried to screw me I would just leave.  In sales most people within a specific industry know each other pretty well.  I reckon it would be more damaging to my career in the industry to take my employer to court than just to leave and find somewhere better.  If I was prepared to set sail for a new industry perhaps I would look at it differently.

My 10 cents:  Sit down and work out how much better/worse off you think you will be and then if necessary take that information to your employer and explain your grievance. If they fob you off and you aren't happy take your contract of employment and your new contract to a solicitor to understand your legal options.  Make your final decision from there.

Good luck.

 

Awesome advice. Like you said if I calmly put together a rational argument and see how they react. 

 

Then can pursue the legal option.

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2 hours ago, libspero said:

We had/have the same thing where I work.

In our case %UK turnover => Performance bonus with top down target setting

The idea of the latter being that it is usually a fixed cost to the company because your manager's job will be to make sure you come in on or around OTE averaged over a 24 month period. Basically a very time intensive sham to create the illusion that if you work hard you will earn more when in fact you won't because your targets will just go up and the company makes more money.   There are advantages and disadvantages to each system.

For me I accepted the change quite readily for two reasons:

1 )  My terms became more favourable (at least in the short term) with my OTE being about £10k more than I was averaging on the old contract.

2 ). If my company tried to screw me I would just leave.  In sales most people within a specific industry know each other pretty well.  I reckon it would be more damaging to my career in the industry to take my employer to court than just to leave and find somewhere better.  If I was prepared to set sail for a new industry perhaps I would look at it differently.

My 10 cents:  Sit down and work out how much better/worse off you think you will be and then if necessary take that information to your employer and explain your grievance. If they fob you off and you aren't happy take your contract of employment and your new contract to a solicitor to understand your legal options.  Make your final decision from there.

Good luck.

 

Awesome advice. Like you said if I calmly put together a rational argument and see how they react. 

 

Then can pursue the legal option.

 

Just a thought I work for a US company, so would I use a US or UK based lawyer?

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just a quick update, a lot of staff complaints have pushed our new plan to start in Q2 now and my old plan to exist for another quarter.

I spoke to a HR consultant who advised that unfortunately a company can change the plan, but only for future sales, she was not sure how it would impact existing 'banked' commissions that would pay out when invoices are paid on deals closed under old comms plans.

I still need to speak to a lawyer, perhaps I can get the banked comms added to my base and get an overall rise in my base salary, even if the 'bonus' i can earn moving forward is a lot lower (a third less paid per sale by my calculations).

Any thoughts?

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