Deductions from earnings.

[BlurredFX]

Recently I was paid some commission as a result of a client who did a big deal with us.

The client has since defaulted on it's obligations, and last month my employer took five hundred pounds off me! There is no provision in my contract of emplyment for this, nor in any disciplinary proceedings. I had one days notice of the deduction.

As it happens, I know they want me out, and I am looking for a new job. But in the mean time, I have a mortgage to pay

Are they allowed to do this? Just take money from my without any consent?

I am due to speak to a solicitor this week.

[old_andrew2007]

I'm not sure so my reply is to bump your thread

regards


andy

[maroondevo52]

Hi, BlurredFX.

This is classed as an unlawful deduction. Unless you have given written consent to your employer to deduct this money from your salary.

The solicitor will advise you to take this to an Employment Tribunal.

This is covered under the Employees Relations Act 13-27.

An employer will not make deductions from wages / salaries unless

1. the deduction is allowed by statute or statutory provision
2. authorised by a provision in the employee's contract
3. the worker has previously given written agreement or consent


Regards.

Scott.

[Sidewinder]

Do you work for commission on a regular basis? What provision does your contract make for payment of commissions and any clawback for unfulfilled contracts? Did the deduction reduce your salary below your basic flat salary for that period?

Although the Employment Rights Act may be a factor, this is not neccessarily an unlawful deduction under the terms of the Act. You are indeed protected against your employer making unlawful deductions, but there is an important exception to the Act which permits your employer to deduct a previous overpayment of wages.

If your contract (either specifically or by custom and practice) is for you to be paid a salary plus commission, then an unfulfilled contract for which you were previously paid a commission may be classed as an 'overpayment' and to that end the employer may be entitled to recover the amount. Commission clawbacks are a regular feature of certain types of employment, most notably financial services, but there would be a clear understanding of the duration of any clawback period and the amounts which could be repayable.

If this commission was paid as a 'one off' and is not covered by your contract then the employer should have made it clear under what basis and conditions it was being paid. This should have been discussed more fully by the employer and if accepted in good faith without conditions regarding repayment under certain circumstances, then you have a right to take the matter further.

You are doing the right thing in consulting a solicitor as this is almost certainly going to need specialist advice - let us know how you get on.

[givemesomepeaceofmind]

sidewinder- a similar thing has happened to me and I wonder if you could please advise. I am an IFA and worked briefly last year for a company who took 50% of gross commissions in return for leads and regulatory fees, compliance etc. I have now left and work on behalf of another organisation.

I have recently received a letter stating that two cases have gone off the books and that I now owe them 100% of all the commison paid by the providers. I contend that I only owe them what was paid to me, ie 50% and have actually returned that amount. They say I owe the 100% and have sent a solictors letter to this effect , saying they will begin county court proceedings if the total amount is not paid. They point to a clause in the agreement which clarifies their understanding of this, ie " "the Representative will indemnify the Firm from and against any claim for clawback of commission made in respect of any Contracts" and "The company shall bear all regulatory costs, ..... the Consultant to be responsible for all other cost",

I have written back saying this is not industry practice and the clause is not specific in the Agreement. i have spoken to a lawyer who tells me that I have a good defence. However I would value another opinion and also advice on how to defend a claim against me.
thank you

[old_andrew2007]

Hi

You could start your own thread, then I think you will get specific advice in addition your posting will not get lost
Please have a read of this link.
It has everything you will need to know to help you find your way around this site.

"How do I...?" A Dummies' Guide to this Forum

Regards

Andy

[BlurredFX]

Wwhhhoooaaaa. Thanks for the responses.

As I hadn't recieved any email notification of these posts?? Maybe I have - got a lot on at the moment!

Anyway, i raised a grievance about this and threw a few others into the mix - turns out he has also taken an account off me without any notice and no disciplinary or anything.
My legal advisor (who is a para legal who currently works in a related field) says that combined with a few other factors, is making it look increasingly like constructive dismissal. Other things I have raised a grievance about include my sales activity being constrained by his giving me rubbish admin tasks to get on with.

There is no provision for clawback and no set schedule or anything like that.

Company policy is to respond within seven days to a grievance. So far, all he has done is call an impromptu Review, with no agenda, no notice, and in a totally differnt format - he brought the office manager in etc. I just simply pointed out I had battered my targets, according to the data in his hand, and that I had raised a grievance and could we deal with the issue at my grievance meeting. Then confirmed it all in an email. I have been having an email exchange with him, detailing his actions. I raised the grievance two weeks ago, and still nothing. The ball is currently in his court, and he's been away for a couple of days.

Thanks for the advice, and I have acknowledged it may seem reasonable to claw it back but there is no provision for it in my contract whatsoever, and his actions combined with an ATE in place for council tax took my wages well below the my basic.

Can't really afford a solicitor right now, my para legal is a friend of a friend type dude, doing me a favour - on condition that he gets a day's "entertainment" when I am back in a better situation.

Turns out, one of my housemates from Uni is now working as a Solicitor in Employment Law, only found out couple of days ago, in one of those bizarre coincidences, but she's defo getting the call. Lets just hope she remembers the "walking into the shower" incident as fondly as I do!!!!!!!!

Any thoughts or comments about similar experiences are most welcome.