Question

Dear HR Professionals,

I would like to know how do you handle commission payout or sales incentives for resignee.

Can these payout being paid after the employee has resigned and compliance?

Thank you!

TH

Reply 1

The date/schedule of salaries (Basic, Overtime, Termination with Notice, Termination without Notice and Dismissal) should be aligned to the Employment Act.

Payment schedule/date for all other types of salaries such as allowances, commission, bonuses, incentives other than those listed above would depend on the terms stipulated in the contract. 'Reasonable' duration is the key. For example, is it reasonable to hold 'commission' or 'allowances' for 12 months and be paid once in every 12 months?

If you do not have these payment stipulated upfront in the employment contract, then, I recommend that it should be discussed and the agreement between the company and the resignee be documented and adhered to accordingly.

Henri