Contract: commissions and dismissal?

Hi,


Background:

I work in the robotics industry, and sell automation solutions with robots.

I typically work 9-12 months on a contract, and once signed there are various payment milestones spread over the full implementation:

(as an example)

  1. down payment 20%
  2. delivery of goods to site 30%
  3. first successful trial run 30%
  4. final acceptance 20%

The implementation from contract to final acceptance easily takes 12 months.


Commission setup:

Based on the contract value, a certain commission percentage is awarded.

BUT...payment of the commission only happens after payment of each milestone.


So I would get 20% of the commission after payment of the down payment, then 30% after payment for the delivery of goods to site etc.


I assume you understand the system as it's pretty straightforward.


Problem:

If I would resign, I can understand I would not get paid the future commissions on that contract.

But the risk is that the contract gets signed, and I get dismissed after the second milestone for example.


Question:

What to add to my employment contract to avoid this issue?

I was thinking 'commissions will be due after dismissal'?

But I am not sure if this is common practice?

Should it be limited to wrongful termination only?


Does anyone have experience with this?

Or suggestions?


Thanks a lot!

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7
lowhangersalesbanger
Executive
3
Director of Sales
What would constitute a wrongful termination?
Kosta_Konfucius
Politicker
3
Sales Rep
That’s the issue with these types of comp plans where every rep that leaves would have left money on the table
Maximas
Tycoon
0
Senior Sales Executive
Totally agree.
poweredbycaffeine
WR Lieutenant
3
☕️
Gotta be honest, this niche legal question is best for a lawyer. If someone in this forum can answer this without talking mostly out of their ass then I’m buying lunch.
HVACexpert
Politicker
2
sales engineer
What if only partly out of my ass?
poweredbycaffeine
WR Lieutenant
3
☕️
Right cheek only then.
CuriousFox
WR Officer
2
🦊
Dang I missed a lot in here last week 🤣
HVACexpert
Politicker
2
sales engineer
Obviously you’re stuck on current contracts, but I say add it for future. If people sign it then you’re covered. If it ends up being a sticking point you can also add riders, addendums, etc. to get the work.
4

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42% 3-6 months out
8% >6 months out
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