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HR Community Message
Unwritten commission practice

Dear HR Community,

We have a sales commission practice that is being questioned by an employee.

The employee had concluded some sales and was entitled to commissions accordingly.

However, in this case, the payment from the customer was delayed and overdue by more than 90 days.

And our rule was to deduct the commissions due to the salesperson by a certain percentage in the event payments from customers are delayed by more than 30 days.

This practice was not written down anywhere in "black and white".

The salesperson is now demanding that he be paid his full commission without any deductions even though there is a delay in customer payment.

His reason is that the rule was not written down anywhere.

Are we allowed to follow our practice and deduct his commission?

We are in the corporate gifts industry.

Thank you and regards


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