My employer is charging me £2k to leave the company

freddykan

Apologies this is a bit complex, but I'm a bit lost and I'm wondering if anyone is able to confirm if there is a legal basis for the below demands? This is based on a discretionary business commission scheme, and the terms quoted below were provided in April 2020 in response to COVID-19. Nothing was signed or agreed by me, we were just informed of this. For context:

• I handed in my notice on Nov 5 2020
• I have been on furlough for months, and could no longer sustain the drop in income (especially as I thought the scheme ended in Oct)
• I was paid £1,200 in commission in my Oct 2020 payslip for sales completed in May/June 2020
• The business is now asking me to refund £2k for the period Nov 20 - Mar 21 based on me handing in my notice on the above date

Should you choose to voluntarily leave before November 2020 then you will forfeit payment for commissions earned in that period of time, and that portion of commission will not be reallocated amongst the remainder of the team.There will also be a requirement (on a sliding scale) for commissions to be repaid if you voluntarily leave during these windows of time, based on the following:

• April 2020 - October 2020: £2,000

• November 2020 - March 2021: £2,000

• April 2021 - June 2021: £1,000
Please accept this as the most recent amendment to the discretionary commission scheme.

Any help much appreciated

bradders1983

How can they ask you to refund money they havent paid you yet?

freddykan

bradders1983 said:

How can they ask you to refund money they havent paid you yet?

This is exactly what I don't understand

Galloglass

Should you choose to voluntarily leave before November 2020 then you will forfeit payment for commissions earned in that period of time, and that portion of commission will not be reallocated amongst the remainder of the team.

What does your employment contract say? Bonus schemes tend to have a degree of discretion (of the management) in them so it will be an annual variation to a contract based on whatever scheme is on offer that year. You should have had a letter outlining the terms at the start of the scheme. So what does that say?

Mrsn

Speak to ACAS. 

kazwookie

IMO bonus tend to be paid AFTER the period of the bonus,Example  ie Jan to April is paid in May's pay)

I have never heard of a bonus scheme which pays before the event!

As others said ACAS or go back to the HR dept / your boss, and ask how can I pay back something I haven't yet had..........

bradders1983

kazwookie said:

IMO bonus tend to be paid AFTER the period of the bonus,Example  ie Jan to April is paid in May's pay)

I have never heard of a bonus scheme which pays before the event!

As others said ACAS or go back to the HR dept / your boss, and ask how can I pay back something I haven't yet had..........

The OP said that in October this year he got paid commission for May/June 2020, so it seems that the company themselves dont have any kind of clue what scheme they operate.

freddykan

Thanks for all responses - I think I need to raise a formal grievance from what I have read on ACAS

Grumpy_chap

Have the company paid a "commission" for the periods when the OP was on furlough, as a form of top-up or goodwill payment and the company are saying that if you leave that "bonus" is repayable?  So the "commission" while on furlough was a sort of retention payment?

BJV

As an employer I would say that the quickest way is to go to your HR department. Sounds like there has been a mistake unless there is a valid reason i.e you have been paid in advance for commission which is not due for payment yet. ? e.g you get a percent on sign up then a completion bonus. I don't know just guessing. But 1st port of call has to be HR. 

ooh nearly forgot was there any training that thy had to pay for? 

billy2shots

Did they include the 

'should you choose to leave' info in your opening post in a letter to you or are you looking for reasons why they are reclaiming money and quoted that from your contract/policies?


The reason I ask is the dates you have given in another point suggests this was given to you 

• The business is now asking me to refund £2k for the period Nov 20 - Mar 21 based on me handing in my notice on the above date. 

Unless they have clearly said it's bonus related, it could be annual leave related? Maybe you have used all your paid leave entitlement for the year but as you won't work the whole year you need to pay a chunk back??