- April 15, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Changes in Employment Terms and Compensation in Tech Sales
My employer has informed me today about a significant increase in my performance metrics and targets for my role in tech sales. Not only that, but the new compensation plan also includes a 100% increase in my targets.
## Importance of Understanding the New Commission Plan
Upon reviewing the new commission plan, I noticed that failure to sign it could lead to termination. When I inquired about the consequences of not signing, I was told that termination is a standard policy for my role.
## Limited Explanation and Unfair Terms in the New Plan
Furthermore, the new commission plan appears to be less favorable than the one I was on previously. Despite this, the company has refrained from providing a clear explanation of how the new plan is calculated based on the past two years of regional and company performance.
## Concerns About Quota Attainment and Commission Structure
One particularly concerning aspect of the new plan is that if I fail to achieve 100% of my quota in a month, I will receive $0 commission for any sales I did make. This essentially means all my efforts could go unrewarded.
## Time Constraints and Job Security
With the new plan scheduled to take effect on April 1, I have limited time to make a decision. The pressure of potentially losing thousands of dollars in compensation, doubling my workload, and facing termination if I do not comply is looming over me.
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****** just grabbed a
>In the new commission plan it says if I don’t sign it it’s grounds for termination.
What does your original contract say? That’s the one you signed and the one that matters. A contract is a two-way street – you can’t just impose one on someone. If one party wants to change the contract, then both parties need to agree to it.
Sounds like you should be getting out of there anyway.
Please …Definitely post an update on this to its outcome
Pretty sure they can’t force you to sign the new contract and dismissal for failing to sign would almost certainly be unfair dismissal if you intended to continue working to the terms of your existing contract and communicated this in response to the new contract offer as you have for 2.5 years already.
They can’t force a shitty contract on you without negotiating it, it’s a 2 way street.
Talk to fair work and get yourself and employment lawyer then follow their directions.
Do not sign it unless your solicitor or fair work (preferably both) tell you to sign it (this probably won’t happen)
Contact fairwork. If you are a member of a union contact them as well. Seek legal advice too.
Any company that runs a punitive kpi system is not wanting to get the best out if its sales staff.
Sounds like they are just trying to make you work 100% harder and not planning to pay you.. let them fire you.. start looking for a new job.. this workplace is now toxic
Almost every tech sales role I’ve had has specified in the contract that commission is at discretion of the company / CEO and can be changed or removed at any time etc. check your contract but I would say you’re shit out of luck and it’s either sign it or just get $0 commission moving forward which is likely a large portion of your total earnings.
If the company is doubling sales targets and based on data you don’t think it’s remotely achievable I would say the company has some problems, and I would be looking for another job.
Contact legal aid in your state
Sounds like a lot of people don’t understand how sales contracts are structured. I have over 20 years in tech sales. While there is an original contract there is also typically an annual quota contract that is updated annually.
What they have done is highly unusual unless they are trying to get everyone to leave. Maybe it could be viewed as constructive dismissal but I doubt it.
Read the tea leaves, it’s time to find a new place to work. Sign the new agreement and look for a new employer. The market is terrible right now. Better to be employed now than have nothing and be looking for over several months without any income.
Not a lawyer, but I genuinely wonder if this falls under undue influence.
Ref: https://legalvision.com.au/undue-influence-contract-law/#:~:text=between%20the%20parties.-,Where%20There%20is%20Actual%20Undue%20Influence,not%20free%2C%20independent%20or%20voluntary.
Best advice is to contact a professional (lawyer), and get into contact with FairWork. Make sure you have a case, basically. Get everything in writing. Tell them outright that you’re wanting more time to get legal advice before signing anything (send this via email or text message, so if they do sack you it’ll only make them look unreasonable and you’ll have a paper trail). Don’t be afraid to escalate it into a legal matter.
Seek advice from an employment lawyer.
Definitely contact your union!
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When does your old contract expire?
lol welcome to sales my friend
Do you have your employment contract handy? You need to figure out if your employment contract specifies the previous commission plan as part of its terms or not.
It’s more likely that it will refer to the commission plan as a company policy, which can be altered by company management whenever.
Like any company policy, if you refuse to follow it or acknowledge you understand it, it might be grounds for disciplinary action which could be termination depending on the situation.
So if the situation is as I’ve described, then yes you could be disciplined and potentially terminated.
The distinction is important. You refusing to sign does not prevent the company from changing its policy and therefore commission plan (unless it is part of your employment contract terms – which is why you need to check).
However by refusing to sign, you’re effectively saying you don’t agree to follow the policy or that you don’t understand it. But again, we don’t know what the paperwork looks like so we can’t be sure.
It’s unlikely that refusing to sign would lead to a termination as would be hard for them to justify the reasonableness of it it. If you refused to follow and acknowledge something like a company health and safety policy, that would probably be the kind of justifiable termination because of the risk of harm.
Also, it depends what your salary is as to any options. Over $167,500 and there’s no such thing as unfair dismissal.
The high income threshold operates as a limit to an employee’s eligibility to be protected from unfair dismissal under the terms of the Fair Work Act.
If an employee is not covered by a modern award, or if an enterprise agreement does not apply to them, they must have an annual rate of earnings of less than the high income threshold.
https://www.fwc.gov.au/high-income-threshold
Don’t sign it. It will make you lose thousands of dollars.
NAL but sounds like constructive dismissal.
As others have suggested, sign nothing, contact fairwork.