Commission Payments on Maternity Leave

lozzabeth

Hi there, is anyone able to tell me if I'm eligible for commission payments while on maternity leave please?

This would be for multi year contracts I have previously signed, of which I'm currently being paid on, upon each anniversary of the contract start date for as long as the contracts run.

This equates to roughly £20k per annum, aside from new deals I secure throughout the year and my basic pay with car allowance.

I was worried the company would not pay me when I had my baby last year, so I returned to work after a month. I'm now pregnant again and hope to take some decent time off this time round.

I'm just concerned they will not pay me, allocate my accounts to one of my colleagues to account manage and pay them on my renewals.

Can they do this? My commission is not part of my normal pay, it is a percentage of sales / contracts signed by myself.

I'm only entitled to statutory maternity leave with my company, it's male dominated. On my previous one month maternity leave they only paid me 90% of my basic salary, they didn't include commission (which I'm paid every month) as they said that was double counting. I've since found out they should have paid me 90% of my average earnings inclusive of commission - is this right? Just so I know for next time....

Thanks

Claree__x

I can only answer the last bit I'm afraid - smp for the first 6 weeks is 90% of your average earnings over a specified time (I can't remember exactly but Google will tell you if you're interested lol - doesn't really matter) so it would include your commission x

lozzabeth

Thanks Clare, I might just pull them up on that once I start my maternity leave, else they're likely to become 'fussy' over how they pay my commission leading up to it :-/ Think it's the average of 3 months prior.... x

Does anyone have any advice on the first part of my query please?

cazziebo

it really depends on how your contract is worded and whether the commission is contractual or discretionary.

If the commission is a reward for winning the business then you should still be paid. If it is for managing the account then it may not be paid while you're on leave (as someone else would presumably be looking after that account) . However, that's arguable - it's not black and white.

Contractual commission should come into the 90% calculation referred to above.

lozzabeth

Thanks Cazziebo, I just checked my contract and commission is only referred to under remuneration: -

The remuneration of the Employee shall be a fixed salary at a rate of £XX per year (which shall be deemed to accrue from day to day) payable by equal monthly instalments on the 15th day of every month plus commission to be paid in accordance with the current commission model in force.

The said commission plan shall be reviewed by the Board annually and the salary rate and commission model may be changed at the Company's discretion with effect from any such review date.

Does that mean my commission is contractual or not?

DKLS

You need to speak with the Sales Director.

lozzabeth

It's an owner run business, all directors are on the Board. I would have taken that route if I felt it was conducive.

DKLS

lozzabeth wrote: »

It's an owner run business, all directors are on the Board. I would have taken that route if I felt it was conducive.

In that case then I imagine they would stiff you for the commission if they can.

lozzabeth

Yes me too :-(

just wondered if they had to honour the commission on my renewable contracts, as they would be paying me on them if I wasn't on maternity leave?