Monthly threshold for sales staff on basic wage

Discussion in 'General Business Forum' started by MrsCBea, Mar 23, 2021.

  1. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    Hi,

    Hoping someone can shed some light on this for me please? My partner is a sales Executive, he is on a basic salary and commission structure. However he has a monthly threshold to cover before he can receive any earnt commissions. This is nearly 4k a month and is to cover his costs i.e. salary, car, phone etc. He is returning to work after nearly a year of furlough where the government paid 80% of his wage. His company have sent him a spreadsheet with the threshold he owes over the past year which is well over 40k. So he has to earn 40k in commissions before he can receive any. He has not been working so how can they expect him to cover a monthly threshold and if the government paid 80% of his wage why would they ask for the full amount.
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #1
  2. Newchodge

    Newchodge Contributor

    15,901 4,479
    Just say no.
     
    Posted: Mar 23, 2021 By: Newchodge Member since: Nov 8, 2012
    #2
  3. WaveJumper

    WaveJumper Contributor

    2,113 535
    Have to say seems rather unfair on the face of it. Has he actually spoken to his company about this just to confirm the numbers are correct and they have not made a mistake and the next port of call would be to check what is actually in his contract of employment
     
    Posted: Mar 23, 2021 By: WaveJumper Member since: Aug 26, 2013
    #3
  4. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    He is waiting to hear back form them after questioning it, hopefully it is a mistake of some sort but I doubt it. He can't just "say no" as they deal with is pay etc so if they will not pay him anything he has earned until the threshold is paid back. I just wondered if anyone had any experience of this kind f thing as it seems a little unlawful to me. Thank you!
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #4
  5. MikeJ

    MikeJ Contributor

    6,108 1,819
    Surely as it's a monthly target, it resets to zero each month?
     
    Posted: Mar 23, 2021 By: MikeJ Member since: Jan 15, 2008
    #5
  6. Paul Norman

    Paul Norman Contributor

    3,456 1,179
    Assuming that this is not a mistake, and that his employer is therefore being a bit unreasonable, he has a very clear choice.

    1. Say no. Which will probably entail finding a new job.

    2. Just run with getting no commission for a very considerable period of time. Maybe never, because clearly his employer is happy for that to be an outcome.

    Personally, I would go with 1.
     
    Posted: Mar 23, 2021 By: Paul Norman Member since: Apr 8, 2010
    #6
  7. japancool

    japancool Contributor

    5,062 1,153
    If the threshold is to cover his costs, including salary, the company has incurred no costs in that regard while he was on furlough - the Government paid it!
     
    Posted: Mar 23, 2021 By: japancool Member since: Jul 11, 2013
    #7
  8. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    It is a monthly target but its rolling, it does not re-set each month. He actually owes now 12 months of threshold now. Even though he has not been working for this time
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #8
  9. Paul Norman

    Paul Norman Contributor

    3,456 1,179
    This company are seriously not playing fair. This is a hole that will get only deeper. I strongly advise that a new job is the best option.
     
    Posted: Mar 23, 2021 By: Paul Norman Member since: Apr 8, 2010
    #9
  10. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    Thank you for your replies, he may have to look at leaving if they do not back down. As someone said the Government paid 80% of his wage, the company did top that up to 100% so surely the threshold should be relative to that
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #10
  11. Newchodge

    Newchodge Contributor

    15,901 4,479
    If he gets no commission, will he receive at least the National Minimum Wage (8.91 per hour from next week)? If not, his employer is committing a criminal act.
     
    Posted: Mar 23, 2021 By: Newchodge Member since: Nov 8, 2012
    #11
  12. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    Yes he will, his base salary is fairly decent.
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #12
  13. MarkOnline

    MarkOnline Contributor

    453 156
    I think the company want him to resign so they dont have to pay any due redundancy pay by making him redundant.
    No reasonable company would impose such terms on a salesforce.
     
    Posted: Mar 23, 2021 By: MarkOnline Member since: Apr 25, 2020
    #13
  14. intheTRADE

    intheTRADE Contributor

    503 184
    Is he the only one who has has received this or is he part of a larger team that have all received it?

    My thoughts exactly. A cost cutting measure without actually calling it cost cutting and being the 'bad guys' laying people off. Unachivele targets set in the hope of resignations
     
    Posted: Mar 23, 2021 By: intheTRADE Member since: Apr 14, 2019
    #14
  15. WaveJumper

    WaveJumper Contributor

    2,113 535
    So now I think I am not clear on this now, does he have a basic salary, then the target of 4K in sales before he receives any commission. And do we assume he has only been receiving a furloughed amount in relation to 80% of his basic salary or was it 80% of his past earnings which included bonus ?
     
    Posted: Mar 23, 2021 By: WaveJumper Member since: Aug 26, 2013
    #15
  16. UKSBD

    UKSBD Moderator
    Verified Business ✔️
    Contributor

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    How can a sales executive have a monthly target of only £4k?
     
    Posted: Mar 23, 2021 By: UKSBD Member since: Dec 30, 2005
    #16
  17. WaveJumper

    WaveJumper Contributor

    2,113 535
    I was thinking his 'target' is the minimum before they start paying him any monies and then its a percentage of everything over that figure
     
    Posted: Mar 23, 2021 By: WaveJumper Member since: Aug 26, 2013
    #17
  18. Alan

    Alan Verified Business ✔️
    Contributor

    6,838 1,901
    From the company perspective their overheads of employing him are more than salary, such as office space, technology, storage of stock that hasn't shifted. So a straight calculation of 20% paid by company isn't exactly a fair comparison.

    Never the less I'd use this as a starting point in negotiation. i.e. the company has only paid 20% so 20% of £40k i.e. £8k is a reasonable back target.

    And if they don't want to negotiate. Don't resign - start work - don't work hard - look for another job and play office politics until either 1) he finds a better job at a better company 2) they
    get fed up and decide to pay him off
     
    Posted: Mar 23, 2021 By: Alan Member since: Aug 16, 2011
    #18
  19. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    4k is not his "target" they call it a threshold so he receives a % of any comms over 4k. Normally not too much of an issue but after not working for a year going back to a threshold of that amount is disheartening. His furlough was full pay at his basic wage 80% paid by the government 20% by his company. He thought if they did roll his threshold over this period it would be at 20% to reflect their actual costs. So now he needs to sell 40k before he receives a penny in comms
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #19
  20. MrsCBea

    MrsCBea UKBF Newcomer

    8 1
    I'm hoping they will negotiate, 8k is much more palatable!
     
    Posted: Mar 23, 2021 By: MrsCBea Member since: Mar 23, 2021
    #20