Legal Question in Employment Law in Pennsylvania
Commissions
I am currently a recruiter for a philadelphia based software firm. My compensation is base + commission. The commission is 4% of the employee's yearly salary. My offer letter states that I receive 2% of the commission upon the employee's start date & the other 2% on their 1 year anniversary date. There is no clause stating that the employee must still be employed with the company or that I have to be employed with the company to receive the second 2%. I mentioned this to my manager & he said that the intent is that I must still be employed here to receive the commissions, that there should have been a clause added to my offer letter, but wasn't. At this point, I have $30k outstanding in the year 2002. What are my rights if I leave this company? I have a copy of my offer letter & of each placement/commission.
Thanks!
1 Answer from Attorneys
Re: Commissions
I believe you have a strong argument that you are entitled to the second half of your commission even if you no longer work for your employer. You did all the work that was required of you to generate the fee when you made the placement. The law would permit an employer to make a rule that receipt of the commission is contingent on remaining an employee but since they did not make that clear you should prevail.