May I have some opinions please.....

teddy54

........ regarding the situation I am in with my employment.
I work as a mobile service engineer for a small private company. Earlier in the year I was informed by my boss that there would be no annual pay-rise (nothing unusual there), however he implemented a bonus scheme. Basically, I would be paid 10% bonus on any amount over £50,000 of servicing business I carried out over the next financial year. As I brought in over £63,000 the previous year I thought it sounded reasonable enough. The way it works is that it is split into 4 3-monthly periods (april, may, june etc), and after each period it is calculated, and 50% is paid and 50% is retained, just in case of long term sickness or whatever, and not meeting the target. Just as an example, in the first 3 months I brought in £17,533, therefore take off £12,500 (£50,000 divided by 4), =£5033, 10% of which is £505.30. Therefore I was paid £261.65, and the same amount was retained. The second 3 month period was even better, £383.33 paid, and the same amount retained.
Now the question (sorry to be so long-winded).
I have been accepted for another position with a different company, a lot better pay, etc, and have handed in my notice. I broached the question of recieving the commision that had been retained, and was told this would not be happening, because I had not completed the whole year, or reached the £50,000 target.
In order to get as much income as possible I have been working much longer hours, and now it seems that the only people to benefit from this is the company.
My thoughts are that I should recieve this commision that has been retained. I believe that it should be paid on a pro-rata basis, after all I have earned it. His arguement is that I did not stay the full year, however my arguement is he will not have to pay me my basic salary for the remainder of the financial year either.
Sadly, all this was arranged on a friendly basis, and I have nothing in writing, apart from a hand-written statement on company-headed paper of the two 3 month periods that have elapsed, of how much I brought in, how much I recieved and how much has been retained.
I would just like some opinions as to wether you feel I should recieve this retained commision (if anyone is still awake, sorry). This amounts to nearly £650, I have told him that I am not concerned about the current 3 month period, even though I know I am ahead of schedule, and would qualify for some more commision.
Thanks in advance.

ckerrd

key thing - you believe it should be on a pro rata basis - the company do not.

What does it say in the contract?
Is there an HR department you can ask.

I suspect that you will get nothing from them but that doesn't mean you shouldn't ask a bit harder

teddy54

No HR department I'm afraid, only a really small company. Nothing down on paper apart from the above.
The thing that really annoys me is that if I do not get anything my company will pocket the commision that has been retained - and that is money I have earned.

ckerrd

Indeed it is a bummer but I think unless you really push them, and to be honest I think you should, then you will get nothing.

Make sure you get all the holiday pay and time off you are due as you don't want to be working for them now and don't want to be putting in any more effort than is required

teddy54

Thanks very much. I intend to keep on the case.

cazziebo

I worked in a company that operated this kind of scheme. It worked primarily as a retention tool, as 50% of the bonus was paid at the end of the year and the employee had to be employed and not working notice at the time it was payable.

I think unless you have something in writing to the contrary then you'll have to say goodbye to the retained 50%. Hopefully your new job more than compensates for it.