Legal Question in Employment Law in Massachusetts
Commissions Due on Termination
I was layed off today, the company owes me back commissions for the 1st quarter - it was supposed to be paid in April.
I know they owe me that. What about all other commissions for the last 2 months - April and May. Also some of the business I closed will not see revenue until later in the year, should I be paid for those also?
3 Answers from Attorneys
Re: Commissions Due on Termination
I would need to know whether there was a written contract between you and the employer, and also whether the compensation/commission policy was reduced to writing. If it was, I would want to review it. Without knowing more, I can only say that employees, upon termination, are entitled to all payments that are due them under the applicable compensation plan. Additionally, whether you are entitled to compensation for business that has not yet generated revenue might be recoverable depending on the facts of your situation. You should confer with a lawyer - and have those documents I mention on hand.
Re: Commissions Due on Termination
You should have been paid all commissions owed to you as of the date of termination. You may file a complaint with the Mass. Attorney General's Office, Division of Fair Labor and Business Practices. Also, you may have common law claims against the company if your termination was in bad faith to deprive you of compensation earned or about to be earned. It's known as the Covenant of Good Faith and Fair Dealing, and it is implicit in all employment relationships in Massachusetts. You should speak in more detail with a lawyer to evaluate these claims.
Re: Commissions Due on Termination
Payment of commissions depends on company policy which is generally in writing. You should be entitled to all commissions on deals that are closed. Deals that are closed by others after you leave are governed by the company's written
policy. You should review the policy and make a demand to your empoyer based on it. If you believed you were fired so the company didn't have to pay commissions you may have a claim for breach of your ccontract of employment (ORAL AS WELL AS WRITTEN)