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VIC Employer Changing Incentives to Sales Commission - Legal under Employment Law?

Discussion in 'Employment Law Forum' started by Annie Miss, 27 July 2015.

  1. Annie Miss

    Annie Miss Member

    27 July 2015
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    I am a pre sales engineer. My employer has said my annual variable incentive (which is on top of my salary and as an incentive reflects company and individual performance) will change to being a sales commission next year. Under employment law, can my employer make this change?

    Thank you.
  2. @thelawbundle

    @thelawbundle Well-Known Member

    27 October 2014
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    Hi Annie,

    I assume that your entitlement to the annual variable incentive is set out in your employment contract (as opposed to any enterprise agreement / Award that might cover your position, for example)?

    If so, generally, what your employer is proposing to do is "unilaterally vary" your employment contract, which is not lawful (as it will constitute a breach of the contract by your employer, not to pay the annual variable incentive).

    If this is the case, I would suggest that you notify the employer of this in writing. If you feel more comfortable, perhaps call the Fair Work Ombudsman (search for them on Google) who might do this on your behalf, maybe even anonymously.

    The Ombudsmans office will be able to talk you through your rights (or "general protections") to enforce your workplace rights under your contract (to pre-empt any adverse action that the employer might take against you if you do not accept the contract variation - e.g. threaten to dismiss you).

    I hope that this helps, Annie. Someone else on Law Answers may have additional advice, but it will not hurt to call the Ombudsman also.

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