Donate SIGN UP

claw backs

Avatar Image
frazerd | 19:21 Thu 28th Dec 2006 | Law
2 Answers
I have recently resigned from a company I worked with for 3 years. In that time I asked for a contract about 3 times and eventually gave up asking.

Following my resignation I am being told the company 'may' need to speak with me about possible claw backs of commisson paid to me within the last 6 months where the clients have since entred a payment schedule due to cash flow problems.

My question is: can they ask for monies retrospectively when in fact I had no contract with them?
Gravatar

Answers

1 to 2 of 2rss feed

Best Answer

No best answer has yet been selected by frazerd. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
You did have a contract with them - albeit a verbal one. Whether they are entitled to claw money back from you probably depends, at any rate in part, on the terms of the commission arrangement you were paid on. This should, of course, all have been set out in writing but if it wasn't then any decision would probably be made based on custom and practice - eg has a similar problem ever occurred before and, if so, how was it dealt with?

If a substantial sum is involved and you can't reach agreement you may need to see an employment solicitor, but its best first to find out more about what they want.
Employment laws dictate that a certain level of paperwork be maintained for any employee of a firm. If this did not present you with a contract , they will have a difficult (and costly) job in recouping monies from you.

N.B. Employers can also be liable to fines for not keeping proper records of employees, contracts, references, identity, etc..

I suggest contacting ACAS on www.acas.co.uk and they can advise you in more detail. Should they try to pursue you for monies, ACAS can help you organise representation with good Employment Law experience to help you defend yourself.

Good Luck

1 to 2 of 2rss feed

Do you know the answer?

claw backs

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.