If my employer keeps an order secret and dose not pay commission, is my employment contract nullifid

An order was received, processed and delivered from my territory. The fact that the order was received and delivered was, at first, kept from me. When I discovered the order, I was told that I did not get paid commission because they did not make money on the sale. My employment contract states that I am to be paid on net sales based on delivered goods, not on margins.

Dose this breach nullify my contract?

2 answers  |  asked Jun 6, 2010 2:34 PM [EST] in Contracts  |  applies to Texas

Share on Facebook

Answers (2)

Thad Harkins
I agree. Most employment contracts (especially with non-compete or non-solicitation provisions) have a "severability" paragraph, that provides that in the event of a breach of one section (i.e. your compensation structure), all the other provisions are still enforceable. You could sue for the unpaid commissions, or file a wage claim with the TWC for the unpaid amount, but the remedy of rescission of the contract is generally limited - though you might claim that there was a fraudulent promise that induced you to sign the agreement, or that the employer's "unclean hands" might give a court power to declare the contract or non-copete void, but these are case-specific, and the case law is complicated, and you really need to have a lawyer review the agreement and all the circumstances surrounding the event on the unpaid commission.

posted by Thad Harkins  |  Jun 14, 2010 7:23 PM [EST]
Jill J. Weinberg
An attorney must review your contract before an opinion can be given as to whether the contract was breached or can be rescinded due to the company's conduct. Also, the definition of "net sales" would need to be examined. The "Remedies" section would also need to be reviewed. Are you trying to get out of a non-compete due to this alleged breach? Assuming Texas law applies, you should buy an hour or two of a Texas attorney's time to fully review the agreement and discuss it with you.

posted by Jill J. Weinberg  |  Jun 7, 2010 1:12 PM [EST]