Here's the scenario:
In 2005 Salesperson "A" sells product "X" on a lease to a business.
Salesperson "A" is given commission for this sale.
In 2008, Salesperson "B" has taken over the account.
In mid-2008 the company that was sold product "X" has gone out of business. This results in loss of revenue for Salesperson "B"s employer, since the remaining lease payments cannot be made.
The loss of revenue is "written off" and product "X" is recovered.
Salesperson "B" (who wasn't even employed at the time of the original sale, and therefore received no commission or compensation for the sale) is then deducted for a calculated portion of the loss in revenue. This number is subtracted from his total revenue sales performance, thus resulting in loss of commission dollars on his next month's paycheck.
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So my question is... Is this a legal business practice? Is it legal for an employer to take money out of Salesperson "B"s pocket for a loss in revenue that was uncontrollable (it's not like Salesperson "B" could STOP the customer from going out of business)? Especially considering that he/she never received any compensation for the sale back in 2005?
Any advice (especially from those who are familiar with the law) would be greatly appreciated.
Aloha
In 2005 Salesperson "A" sells product "X" on a lease to a business.
Salesperson "A" is given commission for this sale.
In 2008, Salesperson "B" has taken over the account.
In mid-2008 the company that was sold product "X" has gone out of business. This results in loss of revenue for Salesperson "B"s employer, since the remaining lease payments cannot be made.
The loss of revenue is "written off" and product "X" is recovered.
Salesperson "B" (who wasn't even employed at the time of the original sale, and therefore received no commission or compensation for the sale) is then deducted for a calculated portion of the loss in revenue. This number is subtracted from his total revenue sales performance, thus resulting in loss of commission dollars on his next month's paycheck.
------------------------------------------------
So my question is... Is this a legal business practice? Is it legal for an employer to take money out of Salesperson "B"s pocket for a loss in revenue that was uncontrollable (it's not like Salesperson "B" could STOP the customer from going out of business)? Especially considering that he/she never received any compensation for the sale back in 2005?
Any advice (especially from those who are familiar with the law) would be greatly appreciated.
Aloha
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