What to do if an employee paid commission on advance payments then quit before performing the work for which the commission was paid?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do if an employee paid commission on advance payments then quit before performing the work for which the commission was paid?
The terms of my employment agreement with this employee was to pay him a commission when certain payments were received. Unexpectedly, some clients made some substantial pre-payments causing the commission to be paid. After receiving these commission payments, the employee unexpectedly quit before actually performing the services for which the prepayments and the resulting commission was paid. He has refused to return the funds which amount to several thousand dollars. I have had to return the entire amount of prepayment to several clients magnifying my loss. What to do?
Asked on August 29, 2012 under Employment Labor Law, Arkansas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You need to take the employment agreement to an attorney to review. It sounds flawed, whcih I think that you know, and you know that you are going to have to sue him. But no court would rely on the agreement if it ended up being unequitable or against public policy. No Judge would allow some one to be paid for no work performed. Get help. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.