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Commission earned on referring a client

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  • Jul 8th, 2020 12:25 pm
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[OP]
Member
Sep 16, 2017
345 posts
234 upvotes

Commission earned on referring a client

Work for a smaller accounting firm that has a client referral incentive.

Client ended up getting bought out and needed additional work done.

Per agreements signed in both employmee guideline andupdated offer letter, as well emails between partners/office manager, the indication is that the commission is based off of net engagement billings collected.

Did the year ends fr the group - no issues. collected commission (billing approx 30k+net of hst)

As mentioned over the last 2 months there was a lot of structure/tax work - I noticed the billing as I was aware of the work being done and the controller/internal accountants are in my network who I interacted with when referring them in and they let me know that cheques were ready (I had offered to pick them up). I noticed that in my last pay commission on amounts collected were not included. (Billing amount was approx 40k+ net of hst)

I approachced the office manager who is charge of payroll and they stated that commission is specifically for year end engagements only - this is inconsistent with what they had said to be before as well as the wording in the employee agreements/updated offer letter.

they mentioned they had talked it over with the principal of the firm who told them this and not the managing partner.

This discussion happened last tuesday, on the same day they laid off a senior and 2 jrs due to covid/poor work performance and slowdown. I am not sure if they discussed this between themselves but I wanted to follow up with the managing partner.

As the client was bought out, tax rules indicate a deemed year end which means more billings for us in the year. Do I bite the bullet on this or go to the managing partner and ask for specific clarification on the intent of htis commission policy as I understood that it is whatever was billed. (If an employee refers a client in specifically for restructuring/tax advisory would they not get commission as well?)

To some 4k may not be a lot, however, I did a good thing which has only resulted in positive outcomes for the firm. I feel that I should be able to discuss this. Any tips on how to approach?

Thank you!
4 replies
[OP]
Member
Sep 16, 2017
345 posts
234 upvotes
So a couple more days have passed and I have not gotten a follow up regarding this from management. I think it is apparent that I will likely have to bring it up with the firm owner to get a response.

Again, I am sending out feelers on whether this is a good idea or not.
Deal Guru
User avatar
Mar 23, 2008
11741 posts
8014 upvotes
Edmonton
Well, my thought is that if your company has been letting people go already, making waves is probably not the best idea if you want to keep your neck from being the next one on the chopping block. For example, if your managers feel like you've gone over their heads and made them look bad, that may influence their decisions going forward. So if you are going to try to chase this down, you may want to think about how you can do it without ruffling any feathers.

C
[OP]
Member
Sep 16, 2017
345 posts
234 upvotes
CNeufeld wrote: Well, my thought is that if your company has been letting people go already, making waves is probably not the best idea if you want to keep your neck from being the next one on the chopping block. For example, if your managers feel like you've gone over their heads and made them look bad, that may influence their decisions going forward. So if you are going to try to chase this down, you may want to think about how you can do it without ruffling any feathers.

C
See, I did think about that, however, I wanted to approach it as clarification on the matter since I did not receive a follow up. The owner of the firm sets the policy, the managers enact the policy. What they have verbally communicated does not match the actual policy written and at the end of the day, they always go to the owner.

In terms of influencing their future decisions, wouldn't this be a good thing to understand that if they aren't willing to consider my interests or act in a positive manner towards my personal well-being - is this even a place I would want to continue working at?

Regardless of the decision - i will continue to do my work as i have - just means that I will also be seeking other opportunities.
Deal Guru
User avatar
Mar 23, 2008
11741 posts
8014 upvotes
Edmonton
MasterBD wrote: See, I did think about that, however, I wanted to approach it as clarification on the matter since I did not receive a follow up. The owner of the firm sets the policy, the managers enact the policy. What they have verbally communicated does not match the actual policy written and at the end of the day, they always go to the owner.

In terms of influencing their future decisions, wouldn't this be a good thing to understand that if they aren't willing to consider my interests or act in a positive manner towards my personal well-being - is this even a place I would want to continue working at?

Regardless of the decision - i will continue to do my work as i have - just means that I will also be seeking other opportunities.
The way I see it, you already have the information you need to make your decision... As you said, the management team gets it's direction from the owner. If, based on the feedback you've received from the management team makes you think it's not a place you want to continue to work at, then you need to start looking for another job.

If you make waves and push for input directly from the owner, you may be taking the option away the option of looking for a job while working there. You may end up collecting EI while you look for another job, after being let go. If that's a risk you're willing to take, then go for it. If that's not a risk you want to take, then quietly accept their decision and look for another position.

C

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