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ARTICLE · 09 FEBRUARY 2022

The rules were changed retrospectively to avoid paying me the sales commission I had earned. Which case won?

Can an employer make changes with retrospective effect to a sales plan? Interesting case discussed here.

AustraliaEmployment and HR

The Facts

Employee earns sales commission under employer's sales program

Between May 2005 and November 2013, the employee was employed as a sales representative selling large scale printing solutions to corporate and government clients.

Her employment contract stipulated that she would be paid a base salary and could also earn commissions through the employer's sales program.

During a six-month period between 1 November 2009 and 30 April 2010 (the "measure period"), the employee exceeded her sales quotas to such an extent that for that period she was 500% over budget.

As a result of this achievement, she calculated that for the measure period, she was entitled to $446,250.39 in commission.

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