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I started as an account manager for large ticket items ($200,000

typical sale) 6 months ago...
I started as an account manager for large ticket items ($200,000 typical sale) 6 months ago, full-time with benefits position. My base salary is $57,000 and guaranteed commission for 6 months to build territory. I was given territory and all accounts within that territory. Another sales rep at the same company, hired about 6 months before me, was hired to sell a certain product line within everyone's territory, so he was selling products to my customers within my territory.
A few months into my job, my manager sent email to me saying that all account managers were now responsible for this product line that this guy was selling and that he would be focusing on business development in another sector. So I pursued business with this product line and built up a pipeline and made sales. I just found out yesterday that all sales I made and all prospects in the pipeline, will go towards the original reps target and he gets commission not me. It turns out he was promised the commission and credit regardless of him not selling into my accounts.
I am furious over this and wonder if I have any recourse?
Also, a new compensation plan is being drafted for me and it has been leaked that my base pay will be cut back.

Can I a company do this and do I have recourse?
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Answered in 2 minutes by:
9/20/2013
Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101,806
Experience: Lawyer
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Debra Thal :

Thank you for your question.

Before I begin I want to explain a bit about how the site works.

It may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.Please do not worry that you will be charged additionally if I ask you questions or if you need to ask me questions. That is not at all how the site works.

As well, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.

Finally, as we go through the process please do not feel rushed if I ask you a question. You are always free to take your time to gather more information before you post back. As well, please understand that even after you rate me the post will not lock and you could always come back for further clarification if you think of something a bit later on down the road.

Debra Thal :

I am sorry to hear this.

Debra Thal :

Do you have a fixed term contract with this employer?

Debra Thal :

When you started doing this extra work were you told that you would get the commission for this?

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Customer reply replied 4 years ago

I answered your questions already but not sure if you got answer.


 


I will answer again.


 


I am not a fixed term contract employee. I am fulltime permanent.


 


I was told I was responsible for this product line and would get commission and credit towards my target.

I didn't get the answer the first time you posted.

So they have breached their contract with you.

It's not lawful to decide not to pay you for work you've done.

As well, this action and most certainly if the reduce your base pay, would amount to a case of constructive dismissal.

When an employer does something that fundamentally changes the nature of the employment so that it drives the employee to quit, this may be a case of constructive dismissal. This is usually the case when the employer reduces wages, cuts hours etc. It is also the case where the employer's conduct makes it intolerable for the employee to continue working.

If an employee does quit under these circumstances then the law is that constructive dismissal is wrongful dismissal and the employer will be liable for damages.

If you are considering this option it is crucial that you first consult with an employment lawyer so that you can get a legal opinion from an expert both about whether the facts amount to constructive dismissal and, as well, about what damages you may be entitled to.

Generally the damages would be equal to what you would receive had you been dismissed without cause. If that had been the case you would have been entitled to receive "reasonable" notice or pay in lieu of notice.

Generally, in determining what is reasonable notice Courts look at several factors including the length of time you worked for the employer, your age, your position, the likelihood of finding new employment etc.

At the high end, if you were in a managerial position, the Court would likely order one month's notice or pay in lieu of notice for each year of employment. If you were not in a managerial position the Court would order somewhat less.

But in this type of situation it may be that you would get a higher level of damages due to the deceitful treatment.

So your next step should be to consult with an employment lawyer face to face.


You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.

The number is:

1-800-268-8326 or(NNN) NNN-NNNN(within the GTA)

Let me know if you need any further clarification.
Debra
Debra, Lawyer
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