If your employer has failed to pay you commission or a promised bonus, you may have a legal claim. Whether the dispute concerns unclear terms in your contract, withheld payments, or changes to your incentive scheme, our employment solicitors can provide clear and practical advice to help you resolve the issue quickly and effectively. Get in touch with us today!
Reward schemes involving commission payments or bonuses are designed to increase motivation by rewarding good performance; however, disputes often arise when the terms of such schemes are unclear or undocumented.
We regularly support employees across a range of industries who are facing challenges such as:
Our team will review the details of your employment contract and any related documentation, assess whether your employer is in breach of their legal obligations, and outline the best route forward, whether that’s negotiation, internal grievance processes, or a claim via the Employment Tribunal.
We know how important commission payments and bonuses can be, and how stressful disputes around them often are. That’s why we aim to resolve matters swiftly, robustly, and with minimal disruption to your career.
Bonus and Commission disputes with an employer arise when an employee believes they have not been paid what they are owed under a contractual agreement or incentive scheme. These disputes often involve disagreements about:
Commission and bonus payments are both types of financial incentives or reward schemes that employers offer to reward employee performance, but they differ in how they are calculated and when they are paid.
Commission is typically a percentage-based payment linked to sales or other performance metrics. It is most common in sales, recruitment, property, and finance roles. For example, if you sell a product or service worth £10,000 and your commission rate is 5%, you would earn £500 in commission.
Commission can be:
A bonus is usually awarded for hitting certain targets or as part of a company-wide incentive and could be based on:
Under UK employment law, you have the right to be paid fairly for the work you do, and that includes bonus and commission payments where they form part of your agreed terms. If your employer has failed to pay you, withheld payments unfairly, or changed the terms without proper consultation, you may have grounds for a legal claim.
Contractual: If your commission or bonus is clearly defined in your employment contract, your employer is legally obliged to honour those terms. Failure to do so may constitute a breach of contract, allowing you to pursue compensation.
Discretionary: Employers may retain some flexibility over discretionary bonuses, but they must not exercise this discretion in a way which is arbitrary or capricious or in a discriminatory manner.
You may have a case if:
If informal resolution or internal grievance procedures do not resolve the issue, you may be entitled to bring a claim for unlawful deduction of wages and/or breach of contract in the Employment Tribunal, typically within three months (less one day) of the date the payment was due, obligation to pay arose, or last in any series of deductions or termination. You may also have a civil claim for breach of contract, depending on the amount and nature of the unpaid sum, usually you would have a time limit of six years from the cause of action accruing to bring a claim.
It is unlawful for an employer to retaliate against an employee for raising a legitimate concern about unpaid commission or bonuses. If you experience negative treatment after making a complaint, you may also have a claim for victimisation (if your complaint relates to discrimination) or constructive dismissal.
If your employer has failed to pay you the commission or bonus you’ve earned and believe you are entitled to, don’t wait. Early legal advice can make all the difference in protecting your income, career, and future opportunities. Contact our employment law team today.
Yes – if your commission is part of your contractual entitlement and your employer fails to pay it, you may have grounds to claim breach of contract or unlawful deduction from wages. Our employment solicitors can review your contract, any associated documentation and/or agreements reached and advise on the best course of action.
A bonus or commission is contractual if it is clearly outlined in writing in your employment contract or a formal bonus scheme. If it’s discretionary, your employer may have more flexibility, but they still must act fairly and consistently. Even if not in writing, there may be argument of an implied contractual right depending on what has happened in the past.
Your employer may not legally change or remove a commission scheme without your agreement if it’s contractually binding (although there are other ways this may be done). Sudden changes without consultation may amount to breach of contract or even entitle you to resign and claim constructive unfair dismissal.
While a discretionary bonus gives your employer some flexibility, they must not act in bad faith, discriminate, or apply the bonus unfairly. If you believe a decision was biased or unjust, you should take legal advice.
For claims in the Employment Tribunal (e.g. unlawful deduction from wages claims), the time limit is typically 3 months minus one day from the date the payment was due, obligation to pay arose, or last in any series of deductions or termination date. Breach of contract claims in the civil courts usually have a time limit of six years from the cause of action accruing to bring a claim. Calculating time limits for these claims can be complex so you should seek legal advice without delay.
Yes, you can still bring a claim after leaving, but strict time limits apply, see above. Whether you’re pursuing unpaid commission or a withheld bonus, it’s important to act quickly and seek legal advice.
Key documents include your employment contract, payslips, bonus or commission scheme documents, performance records, email correspondence, and any records of agreements or discussions relating to your commission or bonus payments.
