more-arw search

Q&A Forum

Bonus question after 8 months in the job

I am leaving my current sales role after 8 months. When I joined they couldn't offer me the salary I required or monthly commission but instead offered me 10% of the company net profit. Wording as follows - 'For the first year the bonus will be 10% of net company profit before tax'.

There is no wording mentioning anything about having to work a full year or having to be employed when payment is due in my contract. I don't want to get something Im not entitled to but this was given as part of my salary.

The company operates its account April to March so I was expecting a pro-rata payment for January to March and then 5/12th's of it for next year?

Am I being unreasonable?

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

1. Hire or consult with a labor attorney.
2. We (or at least I) can't opine on a single sentence. 'For the first year the bonus will be 10% of net company profit before tax'. The contract has to be considered in it's entirety.
3. "net company profit before tax" is subject to manipulation. The company has the ability to sandbag expenses and have less or $0 profit or loss.
4. Are you entitled to something? IMO (emphasis), YES! No company should expect anything from anyone without renumeration. Even if it is documented by a contract. ENFORCEABILITY is the key.
5. I would also try to research on ONE SIDED CONTRACTS. I tried a cursory search and there were a lot of law firm articles.

296 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.