In a basic +commission sales job, is it normal for an employer to not pay commission if you dont hit target?

Question

you get a basic salary and have a monthly target.

you're promised commission of 5% on billings. And if u hit target 3 months in a row, u get an extra 2.5%

Say for example you only bill half your monthly target. Shouldn't they still pay you 5% on what you bill?????

I think its unfair to not pay agreed commision even if u dont hit target?

Can anyone tell me if thats normal or not?

Answer 1

I used to work many years ago in a position where we were paid a base salary of $8.00 an hour, and if we reached a certain target then were paid a bonus. The more above the target we got, the higher the bonus. If we didn't reach that target, even missing it by one, we did not receive the bonus.

I think there is a lot of employment that pays commission and a base salary. Most places that have a base salary, if you don't reach your target, you don't get the commission.

Answer 2

It depends on your compensation contract with your employer.

The rationale behind a basic + commission compensation package is to encourage you to be more productive and in so doing, earn more. The amount that you will receive is directly proportional to your production, i.e, the more you produce/deliver, the higher your compensation is. This arrangement is common for those whose function is in sales or marketing.

On the other hand if you have a fixed salary, you will receive the same amount of compensation regardless of your production because your salary is fixed.

Whether it is fair or not depends on your agreement with your employer.

If it was explained to you, you understood, and you agreed on your own free will that before you receive a 5% commission on top of your basic salary, you have to meet a target, then i don't think your employer is unfair if he doesn't pay you any commission if you were not able to comply with your agreement.

Answer 3

That is unfair labor practice. A sales agent must receive commission on each item for the agreed percentage.