What am i required to pay someone who works for commisssion after they leave
i have just been given notice that my construction manager is leaving. he is paid a base salary plus commission. the commission is pad at the end of the job, after completion and customer is satisfied.
am i required to pay his commission when he leave for jobs sold, but not completed?
Answers (2)
Under Florida law, you look first to the agreement of the parties. If there is no written agreement (or the agreement is silent on this issue), then you look to the custom in the industry to determine when the commission is "earned" (i.e. upon date of sale or upon completion of the project). Typically, the deciding factor is how much work remains to be done by the employee after the job is sold. If the remaining work is minimal, then generally the commission is earned upon sale and you would need to pay the employee post-termination. If there is significant work the employee is still responsible for that will now have to be done by someone else, then they are generally not entitled to receive the commission post-termination.
posted by Phyllis Towzey | Nov 15, 2011 2:39 PM [EST]
posted by Phyllis Towzey | Nov 15, 2011 2:39 PM [EST]
It will depend on the agreement. It appears from your question, that completion and satisfaction are required. If, when he leaves, those two conditions are not satisfied, it would not appear that a commission is due. Was there nothing in writing?
posted by Arthur Schofield | Nov 14, 2011 10:00 AM [EST]
posted by Arthur Schofield | Nov 14, 2011 10:00 AM [EST]
