js2458

Enterprise SDR

Valued Contributor

Standard Practice on Open Deals

Hi all! My job, a growing startup, recently fired me because of lack of capital (they fired half their sales team). I had a couple of larger deals ($50,000+) that were looking like they were going to close within a few months. These deals were prospected, followed up, called, and presented to by me. I received some assistance along the way from colleagues and my boss, but most of the deal was due to my effort.

In my termination letter, my boss stated that I would not receive any commission for any outstanding sale that was not closed during my tenure--including the existing deals that looked like they were going to close within months. he stated this was common practice. Being somewhat new to sales myself--is this true?

Happy to let it go and move onto the next job, but wondering if I have something left to fight for here...

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poweredbycaffeine

WR Lieutenant

5

☕️

Yes, this is sadly common practice. You did not close the deal (your name wasn’t on the order form), so you are not entitled to any compensation.

Did they at they very least pay you a severance package?

js2458

Politicker

3

Enterprise SDR

Nope. Funnily enough, my company was about 2 weeks over our pay cycle and had not paid me yet so I think a severance package was out of the question. And no notice either--just a call in the morning telling me not to go to work that day :) Good news is that I had already begun my job search beforehand because I was scared about my job safety. It's looking like I will be starting as a SDR at a rival company soon.

poweredbycaffeine

WR Lieutenant

2

☕️

Feels like you could go after them for wrongful termination if you wanted to get petty and/or feel litigious

js2458

Politicker

3

Enterprise SDR

Nah, there is no point. I had already somewhat violated a NDA as the specifics had not been part of my training, so I do not think that would go over well.
If you couldn't tell already, it was a helluva of an experience. Just happy to be moving on.

poweredbycaffeine

WR Lieutenant

2

☕️

Good attitude to take away from it—good luck on the new role!

punishedlad

Tycoon

3

Business Development Team Lead

Gosh, luckily none of my start up forays ended this badly (they ended badly, don't get me wrong)
No severance? And no final paycheck? Scummy.

Irishman

Catalyst

1

Business Consultant

Rival company you say? Sweet deals that haven't been signed you say? You did everything (mostly) you say?? Go after those deals for your new company I say!!!

Maximas

Tycoon

1

Senior Sales Executive

Oops, sorry for the situation, does that also happen with the other colleagues that were laid off as well?
Did you try to check with the HR to see if what happened was a part of the company's policy or not?
And finally did you find any term of the signed contract with them regulates the Commission part after layoff cases?
Once having the answer to those questions you surely will have two impressions either that was fair and normal or that was unfair and you were oppressed.
In the second case you could send an email to the financial department to investigate if no response escalate it further and further if still no response take it further away from the company to the Labor Office if you have one in the US, if you don't and you still don't wanna let go your cash you might consider eventually thinking of filing a lawsuit against them only if you have the full required documents that prove what's yours and by comparing the case fees and the outcome if you win!
Best of luck 🤞

js2458

Politicker

2

Enterprise SDR

1. Yes, it was common practice for everyone.
2. The HR of my company was my boss's husband. It consisted of just one person because we were such a small company. I do not think contacting HR would be a good idea...
3. No. It does not exist in the contract.
Not really sure I want to go into it though because they have a decent chance of beating my case. I was technically fired on solid grounds--I somewhat violated a NDA--but I am certain that my firing--along with my colleagues'--was because of a lack of capital. Thanks for the thought though!

Maximas

Tycoon

0

Senior Sales Executive

urw.

punishedlad

Tycoon

1

Business Development Team Lead

Curious how you violated an NDA and how they could prove it?

js2458

Politicker

1

Enterprise SDR

I worked for a company that dealt with connecting professionals to one another at conferences. As an FYI—a lot of the people we work with are in the government or been part of it in the past.

I reached out to someone who would be a potential sponsor at our event, and my boss liked him so much that he wanted to connect him with a co-chair at one of our events. The co-chair, of course, happened to be a former government official per my boss’s words (cannot say which org bc NDA). I introduced the potential sponsor to the former gov official and mentioned that “xyz was a member of NAME OF GOVERNMENT ORG”.

My boss proceeded to flip the fuck out bc I was not supposed to mention this. Partially a fuck up on my part, but a lot of it was bc I was not trained on what we were allowed or disallowed to say. Was yelled at profusely for causing a headache :)

Sunbunny31

Politicker

1

Sr Sales Executive 🐰

And this single mistake was why you were let go? Ouch.

js2458

Politicker

2

Enterprise SDR

Nah it was a culmination of things. Company was struggling with capital, I had already checked out, my boss was constantly yelling at me and other employees. A lot of disorganization. Best for both parties…

CuriousFox

WR Officer

1

🦊

Want me to get em?

Diablo

Politicker

1

Sr. AE

It’s a common practice, unfortunately. If your are expecting to close something with a few days, why not try to talk to your manager based on the effort you have put? Mostly it will be negative but trying is the next best step. All the best !

Justatitle

Big Shot

1

Account Executive

Unfortunately, you don't have much here. There's no legal precedent tying you to those deals and based on the sound of it the company isn't going to be around much longer. Let sleeping dogs lie.

Kosta_Konfucius

Politicker

1

Sales Rep

Unfortunately super common, you even hear stories of people not getting paid out after signature.

It sucks but if they let you go due to funding, they are going to avoid giving you any extra cash

WheelofCheese

Opinionated

1

Sales Executive

I’m so sorry to hear. I can only imagine what a gut punch that was. Chin up and enjoy being their competitor! 😊

js2458

Politicker

1

Enterprise SDR

As a fun update--just got off the phone with HR at a rival company and landed a job with higher bonus incentive and commission. Seems like all worked out (so far)... :)

MrAnderson

Executive

0

AE

When I switched roles in the past I struck a deal with my ex-employer that I would help them close the deals for a commission. They gladly took the offer, but I enjoyed working with them. If you don't trust them or like them don't offer that to them.

justatopproducer

Politicker

0

VP OF SALES -US

This is common, sadly. Don’t take it personal but do read the fine print in your offer letters and discuss if the term is negotiable. Many sales roles pay a smaller up front commission that gets paid out over years. Then when you leave in two years your stuck with only getting a smaller percentage up front.

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