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A number of sectors use commission as an incentive to employees, either by generating pure commission posts or by simply increasing the opportunity to earn commission in excess of an employee's normal wage. Often, the organization and the individual make a specific, non-binding, written arrangement that determines the amount and conditions under which an individual can receive commission.
However, in other cases, under certain conditions not clearly specified by the parties' agreements, there may be a dispute over an employee's right to receive commission. It is therefore important for any individual taking up a post exclusively or partially dependent on commission to be fully cognizant of his statutory right to collect uncompensated selling commission, which may vary significantly depending on the country's legislation and the nature of the arrangement between the contracting partners.
Usually, an associate who is fully or partially remunerated by selling fees will have a contract of contract in writing specifying the terms under which a selling fee is generated and the amount or percent of the selling fee that can be earned. However, if the associate is not remunerated by selling fees, the contract will not be terminated.
However, if there is no existing labour agreement or if its conditions are not clear, proof of other communication between the employers and the employees may be important for assessing whether the employers actually owe the employees a contested commission. Assume an associate is contacting his sponsor through a specific commission on the sale, and the sponsor indicates that he will not be paying the associate the commission on the sale until the buyer has paid.
It could be proof that no commission is payable until the employers receive the money from the sales, even if there is no explicit contractual clause. Government legislation may also differ widely with respect to the maintenance or annulment of certain conditions of an employment agreement with respect to the disbursement of commission.
Litigation over commission on a sale, for example, often arises when an associate has resigned from his or her job with the company and his or her commission is not remunerated as originally foreseen. A number of state legislations forbid an employers from withholding legitimately earning commission because an individual leaves their job.
Government legislation may also differ in the area of nullification arrangements as to how to treat selling commission that is lawfully paid upon terminating an employee's contract of service. It is important in any case that you keep all manuals, labour contract and/or notices with your employers regarding the provision of commission in case of disputes.
In particular, if you are considering taking a post that is remunerated in whole or in part by a commission, or if you give up a post that has given you a commission, you will want to have this information at hand if your employers do not give you a commission that you lawfully made.
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