Payment of commissions

Sales commission based on amount client has paid rather than total sale
By Colin Gibson
|Canadian Employment Law Today

Question:

We have a sales executive who earns a flat annual salary plus a commission based on total sales figures, which is paid out quarterly. The quarterly calculation is based not on the total sales amount but what the client has paid at that point in relation to the total sales figure. For example, on a sale of $50,000, if the client has only paid $10,000 of the total, the commission in that quarter is based on the $10,000. The employment contract only outlines simple remuneration such as total amount and payday. Is this method of commission calculation common or even legal?

Answer: