Commission clawback as part of redundancy pay - fair? 22 December 2020 at 10:02AM in Redundancy & redundancy planning 3 replies 352 views

Four_Oaks_Bookworm

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!

getmore4less

IT will be down to the contract on commission payments.
what has happened previously when tours have not run?

look up 
unlawful deduction of wages.
For an Employment tribunal  there is a 3 month time limit looks like you missed that window.
MCOL  is still an option

Thrugelmir

What does your contract actually say with regards to clawback of commission?  

thebrexitunicorn

If your employment ended early October you’re still within the three month window to bring a tribunal claim.   If you think you might want to do this you need to notify Acas of the potential claim (can be done online) before the three months is up. The clock will then be stopped on your tribunal deadline to allow for conciliation, to explore whether the matter can be sorted out without having to go to court. 

Of course, if your contract provides for such a deductIon there is unlikely to be much point in pursuing the matter.