Public Defender: Can an employer simply change my contract to alter commission payments?

AN employer changes your contract conditions surrounding commission, saying you “earn too much”. What can you do? Brydens explains and answers your questions.

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Below, Brydens addresses a Public Defender reader’s question about employer contracts surrounding commission payments.

But you don’t have to ask about commission payments.

Post your question by going to the comments section.

Please note: Normally questions are answered on Thursday between 1pm and 2pm. But this week responses will be posted later.

Alicia asks: My boss made me sign off on a new commission structure which meant for a product I sell I’d only earn $1 instead of $2.50. I was told that I was earning too much and he had “made a mistake”. He said it was not “fair” that I was earning more than more senior colleagues. What are my rights?

Answer: A contract of employment is no different to any other contract. A contract of employment cannot be unilaterally altered or terminated unless there is specific provision within the contract. Your contract provides for payment of a commission of $2.50 per product sold. It is not open to your employer to unilaterally alter the terms of that agreement. A contract can be vitiated if there has been a genuine “mistake” by one of the parties to the contract as to the essential terms of the contract. In your case it appears that the mistake was simply a miscalculation as to the amount you would earn. This would not be sufficient to vitiate the contract. It is open to you to speak to your employer to have the terms of your contract reinstated. Failing that, a complaint can be lodged with the Fair Work Commission.

THIS legal information is general in nature and should not be regarded as specific legal advice by Brydens Lawyers or being relied upon. Persons requiring particular legal advice should consult a solicitor.