Reply to post: Re: Looks like mistakes were made

Re: Looks like mistakes were made

...the presumption the Tribunal makes is based on conjecture and not either the Sales Compensation Plan (ie. there is no reference to the SCP and thus it is reasonable to conclude it is not mentioned.) or on a offer made to the salesman to pay commission over 300% in installments over the life of the contract...

There are references to the plan(s), and presumably they'd be part of the documents submitted in the case bundles from plaintiff and defence. I think the cap is kind of presumptive, ie in the absence of approvals, the 300% cap stands. It seemed like there was an offer >300%, but rejected by the sales person. It'd have been interesting to see those documents as part of the fairness test, ie the management objectives. One challenge with deals like this is they can take a sales person away from generating new business & turn them into an account manager, spending the majority of their time making sure this deal is delivered and the customer stays happy.

Takeaway: if going to tribunal, get your ducks in a row and carefully prepare your case

Yup. But perhaps more importantly, if you're in sales, and have a deal like this on the horizon, get your case prepared and presented, if you're busting your cap. Which is (or should be) part of sales, ie it's an inside sales job to sell your commission to the business.