NSW Commission plan question(s)

Discussion in 'Employment Law Forum' started by walaj, 11 July 2019.

  1. walaj

    walaj Member

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    History:

    I joined my employer in 2017, on a 75:25 base/commission plan basis.

    As part of a merger, I was transferred to a new role in January 2018, and finally got a 2018 commission plan in May 2018, which I signed on the premise that no sign meant no commission.

    Due to complaints about the achiveability of the 2018 plan by my new team, we have finally been proposed a new bonus scheme. The bonus scheme is payable only from a global 70% target being met, and then paid monthly, with a clean up in January to resolve any discrepancies plus handling of a 0-1.5 'personal performance' multiplier.

    In the mean time I've been offered a role with a new company, and notified my current company of my plan to resign, having been paid nothing of the variable part for 2019.


    Original Contract
    In the position of Solutions Engineer (Australia/New Zealand), you will be eligible to participate in and receive commission payments (“Commissions”) under the Company’s 2017 sales compensation plan, as from time to time established (“the Plan”), pro-rated based on the date your employment commences.
    The annual payout attainable if you achieve 100% of your Revenue Target or sales quota under the Plan is AU$45,000, pro-rated based on the date of employment.

    Your eligibility and compensation under this Plan will be governed solely under the terms of the Plan and applicable Company policy as from time to time established. The Company reserves the right to amend the Plan and its employee benefits plan from time to time, in its sole discretion.


    2018 plan specifically stated
    This letter is to confirm and outline your individual variable compensation plan and MBO for you assigned sales territory ("Territory") for FY18 - Jan 1, 2018 through Dec 31, 2018.
    Followed by the targets.

    Having not been asked or given an option to agree the new bonus scheme, where do I stand on the variable component on my pay? Or is it all moot given I've resigned?
     
  2. Rod

    Rod Lawyer
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    The original bonus system stays in place until you agree with the new scheme. Resignation MAY impact on payments depending on the wording of the bonus system.
     
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  3. walaj

    walaj Member

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    Makes sense. Doesn't help me though - I'm not in a pure sales role now, so the 2017 plan grants me zero.
     
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