General workplace agreement query: Is it legal for a company to not pay 100% of employee sales commissions on termination of employment?
Due to the nature of the industry, commissions are only payable upon construction commencement (Site Start) which is often 12-18 month after a sale takes place. The below extract is a clause from an employment contract offered with a building construction company.
I’ve search the fair work website, but am unable to find anything specifically relating to workplace agreements and commissions paid. Under this agreement, a sales employee will never receive full sales commission payment upon resignation/retirement. Can this be legal?
Any help would be appreciated.
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4. Remuuneration
4.1 Annual Salary
Your annual gross salary is set out in Schedule 1 item 5 of this Agreement and will be paid monthly less tax into your nominated bank account by electronic funds transfer.
4.2 Commission
. 4.2.1 In addition to your annual salary as specified in clause 4.1 and subject to clause 4.2.2, the Company will pay a commission of $1,000.00 plus superannuation to you on a duly executed RIA Building Contract. Any commission payable is conditional upon construction works commencing, and the commission will be paid by the Company upon construction works commence on the property ("Site Start").
. 4.2.2 If your employment is terminated for whatever reason, then the commission payable by the Company to you is as follows:- a) If a BIA Building Contract has been duly executed before your employment is terminated but construction works have not commenced then the Company will pay $500.00 as commission to you which is payable at Site Start.
For clarity, this means that if a RIA Building Contract was signed by both parties before your employment was terminated but construction works had not commenced, you would only be entitled to commission of $500.00, as commission is conditional upon the building works commencing.
The reduced commission will be paid at Site Start.
b) No commission payable for any unsigned Contract at the time your employment is terminated
Due to the nature of the industry, commissions are only payable upon construction commencement (Site Start) which is often 12-18 month after a sale takes place. The below extract is a clause from an employment contract offered with a building construction company.
I’ve search the fair work website, but am unable to find anything specifically relating to workplace agreements and commissions paid. Under this agreement, a sales employee will never receive full sales commission payment upon resignation/retirement. Can this be legal?
Any help would be appreciated.
—————————————————————————
4. Remuuneration
4.1 Annual Salary
Your annual gross salary is set out in Schedule 1 item 5 of this Agreement and will be paid monthly less tax into your nominated bank account by electronic funds transfer.
4.2 Commission
. 4.2.1 In addition to your annual salary as specified in clause 4.1 and subject to clause 4.2.2, the Company will pay a commission of $1,000.00 plus superannuation to you on a duly executed RIA Building Contract. Any commission payable is conditional upon construction works commencing, and the commission will be paid by the Company upon construction works commence on the property ("Site Start").
. 4.2.2 If your employment is terminated for whatever reason, then the commission payable by the Company to you is as follows:- a) If a BIA Building Contract has been duly executed before your employment is terminated but construction works have not commenced then the Company will pay $500.00 as commission to you which is payable at Site Start.
For clarity, this means that if a RIA Building Contract was signed by both parties before your employment was terminated but construction works had not commenced, you would only be entitled to commission of $500.00, as commission is conditional upon the building works commencing.
The reduced commission will be paid at Site Start.
b) No commission payable for any unsigned Contract at the time your employment is terminated