Commission clawback as part of redundancy pay - fair?
in Redundancy & redundancy planning
3 replies 352 views
I worked in the travel industry for 11 years, in a well-paid senior tour operator sales position; in March I was furloughed, and then in August given my redundancy notice, effective early October (along with all the other employees). As part of my final payslip, my employer clawed back over £1200 in commission paid prior to March 2020 for sales of tours that were due to travel from in 2020, but which obviously did not. However, two things are concerning me slightly. One is that this element of my final payment was not agreed with me in advance (no argument about outstanding holiday pay or the redundancy settlement itself, both of which were fair and accurate), so the deduction was somewhat of a surprise. The second is that in my contract and associated commission agreement, there is no mention of clawing back any commission paid for tours that subsequently cancel. The explanation of course was that because the tour didn't operate, the profit from that tour was never realised, and that the commission was a payment 'on account' in anticipation of that profit, but isn't that an argument 'after the fact', and therefore not strictly fair or legal? The company is still trading (albeit only with the 2 directors and no salaried staff any more), so it's not a question of insolvency. And if I have some kind of case, is there a statute of limitations (elapsed time) after which I can't bring any action? Any advice welcome, thanks!
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