Help needed, deduction from wages

Sambucus_Nigra

ESKIMO wrote: »

40 years wow! Then new management? Sounds shady to me!

When you said; 'the company reserve the right to reclaim any guaranteed commission payments should your employment be terminated by either party within the first 6 months of employment.' Without reading more into the ins and outs of this on the face of it I would seriously dispute this with your employer. On what grounds are they making this clause in your employment contract. reading between the lines unless this comprises part of your salary ie say a basic plus commission - you are entitled to this. However, say if this commission formed more of a 'bonus' then they would reserve the right not to pay it, which is what i think it sounds more like. - Just a very poorly worded EC if you ask me.

Going on from what ceh209 said, if it forms part of your NMW you are fully entitled to it.

As regards to; "it isn't working out and we are restructuring the office." - They can't do that. Provided you have worked your probationary period they would have to 'officially' make you redundant. Although the fact that you have worked there less than 12months means that you don't get any employment rights (ie redundancy pay). I have reason to believe that they are now increasing this to 24 months would you believe.

In a nutshell they can't make 'promises' on an EC and then make a 'get-out clause' to recoup what they have paid you in addition. It comes under a fine line of NMW and 'benefits in-kind' - like bonuses and commission - which are legally declared and therefore tax applicable. If you have paid tax on them. You are entitled to keep them. Always check your wage slips. KEEP THEM. DON'T LOSE THEM!

Also worth popping along to your local CAB - show them your evidence and they will be able to support you. On that grounds you should have a strong case to take them to an employment tribunal if you can's settle it yourself. I urge you to do this. Don't let them get away with it. Show the CAB your employment contract as well. They will be able to go over it with a fine toothcomb - much better than any of us can 'read between the lines'. x

Where to start? Apart from anything - this is all complete tosh. Yes they can do this, yes they can give a week's notice and end the employment without making the OP redundant, it doesn't form part of NMW as the OP has already pointed out, you can't take them to a tribunal within a year's employment unless there are grounds of discrimination, the CAB won't support the OP as the line in the employment contract is quite clear to allow the money to be withheld, the probationary period is a red herring and does not exist in law - the only important timescale is a year's employment.

SarEl

Sambucus_Nigra wrote: »

Where to start? Apart from anything - this is all complete tosh. Yes they can do this, yes they can give a week's notice and end the employment without making the OP redundant, it doesn't form part of NMW as the OP has already pointed out, you can't take them to a tribunal within a year's employment unless there are grounds of discrimination or whistleblowing, or trades union activity, the CAB won't support the OP as the line in the employment contract is quite clear to allow the money to be withheld, the probationary period is a red herring and does not exist in law - the only important timescale is a year's employment.

It's also twaddle

And you can deduct below the NMW (down to £zero) on a final wage. It's the law!

And I can count on the fingers of one hand (and still have fingers left over) the number of CABx who could go over an employment contract with a wide toothed comb, never mind a fine toothed one!

Annisele

I agree that most of what Eskimo posted is tosh, but I'm curious about one point. (Curious as in "I don't know the answer", not as in "I think SarEl is wrong to say it's twaddle" - I wouldn't dare to contradict her!).

Presumably the OP has paid tax and NI on the £1,200. So - can the employer reclaim the whole £1,200, or can they only reclaim the £1,200 less the tax and NI the OP has paid? If the employer can reclaim the whole £1,200, then the income tax should come out in the wash on the OP's tax return, but I guess the NI won't - what happens to that?

SarEl

This is tax issue rather than a legal issue. But yes, in some form or another the OP is due back tax and NI paid. NI can be refunded if it has been overpaid - the calcuation is often done in the wages and not noticed but I recall several years ago getting a letter from the NI people with a cheque because I had overpaid NI - although it was about two years after it had been overpaid and I didn't have a clue about it!

DVardysShadow

MissMotivation wrote: »

Today was payday and they have deducted the £1200 guaranteed commission, I know that they can do this but didn't think that they would because they terminated my employment and also the commission that they will earn from business I have done over the last 3 months will far outweigh the £1200.

....

What does everyone think?

I think there may be an issue of terminology here. As I understand it, guaranteed commission is given regardless of sales, so I would say it is recoverable. But equally if some commission were earned, it depends on how the commission is paid.

• If earned commission is paid on top of the £400/month guaranteed commission, then the guaranteed commission should be paid back in full.
• If earned commission offsets the guaranteed commission, then only the unearned part of the guaranteed commission should be deducted.

If it is the latter case, I would say it could be unlawful deduction of wages [if that applies to commission] - or if not, I would say there would be grounds for a civil case.

hucknallglynnbob

eerrrmm, have you still got company car? if i were you why not go to nearest supermarket near closing time find metal bollard and reverse into it out of view of camera as hard as you can, wont get your money owed but might make you feel better

ILW

Produced £150k in business and they let you go?
What were you selling?

telboyo

Surely 3 months from feb 24 would take you to may 24th not june 30