What can I do to protect my commissions once I resign?

I am planning to resign from my present sales job which compensates me with salary and commission.how can I be assured that my present company will pay all commissions do on shipped orders, and on open orders that are not shipped as of yet? Keep in mind I do not get paid commission until my accounts pay their invoices in full.i have copies of all my orders, but that does not guarantee me they will not be cancelled.what action should I take before I tell them about my resignation.thank you.

2 answers  |  asked Mar 15, 2001 8:29 PM [EST]  |  applies to New York

Answers (2)

Stefan Berg
You should keep good records

this is a difficult issue. you must keep accurate records of all of your sales,and the commission due. Expect your ex-employer to not pay and require you to take him to court to receive the commissions you are due.

After you leave your employer ask for payment and see what happens.

I can work with you on this,but youmay want to try and find an attorney closer to you, geographically. I am in syracuse.

posted by Stefan Berg  |  Feb 19, 2001 3:27 PM [EST]
David M. Lira
NY law and careful accounting protect your commiss

There is a special New York State law which specifically protects your earned commissions. That is, the law says you are entitled to your commissions even though you are no longer with the firm at the time the commissions become due and payable.

However, your question seems to have less to do with the law, and more to do with accounting. That is, for your own protection, you should document, as best you can, each commission you might become entitled to. I'm not saying that you have to, or are entitled to copies of purchase orders, invoices, packing lists, etc., although if you could obtain that level of documentation that would be great. I am saying that you should be keeping a notebook or ledger recording enough information about each transaction that, if push comes to shove, you can ask for very specific information from your former employer in subsequent litigation.

I don't know what industry you are in, the type of products you sell, or how your commission is calculated, but, at minimum, you should be recording for yourself the date of transaction, customer name, the customer contact who ordered the merchandize, and the total value of the transaction. You should also be clear about how your commissions are calculated, when they are calculated, and be able to at least identify personnel manuals, sales manuals, or other documentation that explains how commissions are calculated. Again, if you have something in writing which explains how commissions are calculated, that's great, but even if you don't have this type of documentation, you should know how your commissions are calculated.

I hope you find this helpful.


David M. Lira

posted by David M. Lira  |  Feb 19, 2001 3:21 PM [EST]

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