Commission and Bonus Agreements & Disputes – for Businesses

We have extensive experience in the drafting of commission and bonus clauses in service agreements for a range of industries including estate agents, traders, recruitment consultants and sales teams.

This can include careful consideration of the ‘formula’ to be engaged in commission claims and the factors that will be considered by any Court or Tribunal either arising from: a verbal agreement (and the enforceability of the same), an express contractual term or as part of the exercise of a general discretion which engages common law principles of ‘fairness’.

Disputes relating to commission and bonus schemes often arise upon termination of employment where there may be a question of whether any payment or pro-rated payment is due. We can assist with drafting of such provisions in employment contracts, Service Agreements and/or separate scheme documents to ensure clarity for all parties.

 

Frequently, allegations are made of discrimination which can include claims of equal pay in respect of contractual terms or sex discrimination in respect of the exercise of discretion, and we are familiar with the relevant tests to be applied and the inferences that can be drawn when advising on likely outcomes.

 

Where a dispute arises we advise on the defence of those proceedings whether brought in the High Court or Employment Tribunal.

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Experience
Acting for a Trading Company on the assertion of a claim for a contractual commission payment by a former employee and issues arising as to unlawful deductions made by the employer in the formula applied to calculate the bonus. We engaged directly with the former employee and their advisors, addressed the allegations robustly and avoided a claim being issued without additional payment to the employee.
Acting for an FX Company in defence of allegations made by a former employee that a verbal agreement was reached in respect of commission payments.