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An employee who earns commission is leaving the company. How do we handle commission payments that are still outstanding?
Apr 6, 2015 | The Canadian Professional Sales Association lock

When starting a new position, you and the company in question will outline a detailed written agreement that summarizes the basis in which you will earn a commission on the sales you close. However, in certain situations such as job termination or resignation, disputes can arise over your entitlement to unpaid sales commissions. Consequently, it is important that any individual taking a position that works with commission based pay be aware of their legal entitlement to unpaid commissions upon their absence.

According to the Ontario Ministry of Labour, if employment ends:

The employer shall pay any wages, to which the employee is entitled to the employee not later than the later of,

(a) seven days after the employment ends; and

(b) the day that would have been the employee’s next pay day. 2000, c. 41, s. 11 (5).

For more information on employment standards, please visit the Ontario Ministry of Labour.

*This guide is provided for your information only. It is not a legal document. For complete information, including what is stated above; refer to the Employment Standards Act, 2000 and its regulations.

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