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Hello,
The company had recently updated the commission structure. It is designed specifically that the sales forces do not lose earning when meeting the sales target compared to the old commission structure.
The letter informing of the commission structure had gone out after a meeting with individual sales persons. Some had signed the acceptance letter but others haven’t. Is it enforceable from the effective date indicated on the letter without the acceptance letter signed ?
We have employees based in BC, QC, MB, and ON.
Please advise.
Probably not, but there are a bunch of variables at work here.
First question: Do you have a preexisting written agreement with the sales people? If so, are the commission changes less favorable than the original terms? If the answer to both of those questions is yes, the changes won’t be enforceable even if employees do sign UNLESS you give them what’s called consideration, or something of value in exchange for accepting the new terms. Consideration must be something the employees didn’t have before. So, if like many employers do, you make “employment” or “continued employment” the consideration, it won’t work–although that probably will work for new employees you don’t already employ.
The wildcard in all of this is what the original contract says or doesn’t say. Specifically, is there anything in the agreement that gives you the right to modify the commission terms unilaterally? If so, you should be on solid ground.
Bottom Line: Try to get everybody to sign and make sure you’re giving them consideration, unless the contract says you can make unilateral changes, in which case you don’t have to deal with the consideration problem. Hope that helps.