Due but unpaid sales commission
As Director of Business Development, we earn a direct 10-14% sales commission on any product sold. However, due to the way our products are delivered, a certain % of that sales commission is paid up front, the remainder paid as the product is delivered over time, perhaps over 2-5 years.
I've been considering a new opportunity, and would like to know if I still legally due the upaid portion of the commission(s) due me in two instances, 1) if I leave or quit voluntarily or 2) if I am laid off. This is assuming the company continues to operate naturally but there is also a possibility that the company might be acquired. What might happen in this case?
Thanks!
Answers (1)
The answer to this question depends on your agreement with the company, which should be contained in the sales plan. The plan should say whether you continue to receive commissions after resignation or lay off, though it may not address these eventualities. If the plan does not address these issues (or if you do not have a written plan), there are several factors that go into whether or not you are entitled to the commissions after you leave. Those factors include things like whether there was a verbal agreement about the commissions and what the company has done in the past when people have left.
posted by Judith Miller | Apr 16, 2002 09:15 AM [EST]
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