Resignation Pay

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
As some know, I've resigned and going to a new job 2nd September. I've got two questions :

a) Leave pay - I have 35 days and the letter of employment states no more than 21 may be accrued. My gripe is firstly no one told me to take leave - both verbally or it writing. Secondly, the employment letter is years old and doesn't even state the correct number of days I get anymore.

I've posted once before on this and most said if the letter states, then it is so. But it appears this is actually wrong and all leave should be paid out? http://www.labourguide.co.za/most-recent-publications/annual-leave

the employer may not introduce a "use it or lose it" policy. Such a policy would be illegal, and therefore unenforceable even if the employee signs such an agreement.

The company agreed to meet me half way with 28 days, so I only lose 7 days - but just curious?

b) The second query is more what is bugging me : commission. We pay when the sale is invoiced, the following month ... so everything invoiced March, is paid end April etc. My notice period is August - but surely everything invoiced during this month is still due to me?!
 

Batista

Executive Member
Joined
Sep 2, 2011
Messages
7,909
Good Luck, i got robbed of leave days when i left my old company.
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
The leave I'm OK about - not thrilled, but ok.

The commission I think is actually against the law
 

Chevron

Serial breaker of phones
Joined
Oct 2, 2007
Messages
25,900
The company agreed to meet me half way with 28 days, so I only lose 7 days - but just curious?

You're lucky they didn't cap it at 21.


b) The second query is more what is bugging me : commission. We pay when the sale is invoiced, the following month ... so everything invoiced March, is paid end April etc. My notice period is August - but surely everything invoiced during this month is still due to me?!

Of course. Why wouldn't they still give it to? Will you banking details change or something?
 

AlmightyBender

Executive Member
Joined
Aug 24, 2012
Messages
7,256
When I changed jobs I was paid once in my notice period and then once again in the month after I left which included leave, outstanding overtime etc. So not much to worry about I think because they can't not pay for August work just because you don't have a bum in the seat in September.
 

Biscuit1018

Expert Member
Joined
Jan 16, 2008
Messages
1,255
As some know, I've resigned and going to a new job 2nd September. I've got two questions :

a) Leave pay - I have 35 days and the letter of employment states no more than 21 may be accrued. My gripe is firstly no one told me to take leave - both verbally or it writing. Secondly, the employment letter is years old and doesn't even state the correct number of days I get anymore.

I've posted once before on this and most said if the letter states, then it is so. But it appears this is actually wrong and all leave should be paid out? http://www.labourguide.co.za/most-recent-publications/annual-leave

the employer may not introduce a "use it or lose it" policy. Such a policy would be illegal, and therefore unenforceable even if the employee signs such an agreement.

The company agreed to meet me half way with 28 days, so I only lose 7 days - but just curious?

b) The second query is more what is bugging me : commission. We pay when the sale is invoiced, the following month ... so everything invoiced March, is paid end April etc. My notice period is August - but surely everything invoiced during this month is still due to me?!



You are going to hate what I say but I have been in all 3 positions. On the receiving end, as a Company Director and lastly as an owner of a company.

a) Leave - If they have rules and you knew the rules existed (or you should of known the rules existed) then tough luck. Your only way back would be totally inconsistent implementation of the rules like if everyone else got all their leave paid out and you have been singled out. Tough to prove.

Another exception would be if you tried to take leave and they wouldnt grant it. i.e. the reason why you accumulated so much leave was because they effectively forced it that way then its good practice to pay it out.
Good companies remind people about their excess leave outstanding but it isnt a legal requirement

b) Commission - Well that is governed by the Rules of the Commission Scheme (Often called a Sales Plan, or Sales Incentive Scheme) which is usually outside your employment contract.
If it says you lose, you lose. Even if it doesnt say that but the policy and implementation has been like that and you knew the rules or should have known the rules then you lose.

I once lost a few R100k in incentives but the rules were crystal clear.
Incentive schemes are often good golden handcuffs that prevent good Sales staff from leaving.
Of course when they only lag a month or so then they are hopeless handcuffs.

They cant set out to screw you but they can enforce their rules.

The lesson
- Know the rules
- Take your leave before you resign
- Or live with consequences
 
Last edited:

killadoob

Honorary Master
Joined
Jan 30, 2004
Messages
46,571
You really need to go sit down and have a chat to the people who deal with this sort of thing within the company. Go in and have a nice chat with them, nothing threatening like yes but this and that, ask them the questions you have asked. See their response then come back to us.

Don't burn bridges and come across poorly. Sort it out head on and find out what they think will happen. Then thank them for their time and tell them you just want to make sure everything is in order. No point going in all aggressive demanding this and that, there is a saying: You catch more flies with sugar/honey than vinegar or some shyte.
 

Biscuit1018

Expert Member
Joined
Jan 16, 2008
Messages
1,255
You really need to go sit down and have a chat to the people who deal with this sort of thing within the company. Go in and have a nice chat with them, nothing threatening like yes but this and that, ask them the questions you have asked. See their response then come back to us.

Don't burn bridges and come across poorly. Sort it out head on and find out what they think will happen. Then thank them for their time and tell them you just want to make sure everything is in order. No point going in all aggressive demanding this and that, there is a saying: You catch more flies with sugar/honey than vinegar or some shyte.

Excellent advice

If I am dealing with a resignee I am more likely to exercise discretion if he is humble and polite.
If he is leaving and aggressive I dont have a lot to lose by digging my heels in.
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
Of course. Why wouldn't they still give it to? Will you banking details change or something?

They are saying they only pay till I leave (31 August) - which means I forfit anything invoiced in August while I'm still here. I don't think this is right at all
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
Agree with not burning bridges and I have chatted - but not much as come out of the chats.

There is a line though between not being walked over and a company taking advantage of the employee. According to the link I posted, they cannot withhold my leave .... But they have held 7 days (1/3 salary). I grinned and took it .... But when thy mentioned they may withhold commission I get a little upset.
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
Biscuit - The reason they met half way is because they say it was both my fault and there's. I have accepted that (grudgingly) - but looking at the law above says that is illegal ...

Commission - I'm sure is illegal to withhold
 

Chevron

Serial breaker of phones
Joined
Oct 2, 2007
Messages
25,900
Agree with not burning bridges and I have chatted - but not much as come out of the chats.

There is a line though between not being walked over and a company taking advantage of the employee. According to the link I posted, they cannot withhold my leave .... But they have held 7 days (1/3 salary). I grinned and took it .... But when thy mentioned they may withhold commission I get a little upset.

You still lucky you got some of those extra days. At my company anything over the limit gets forfeited when you leave. Already happened to a few guys. Your own fault for not taking leave.
 

syntax

Executive Member
Joined
May 16, 2008
Messages
8,663
They are saying they only pay till I leave (31 August) - which means I forfit anything invoiced in August while I'm still here. I don't think this is right at all

This is clearly unfair. If it is commission that you would have got had you stayed an extra month, then they must pay it out to you.
I would probably become difficult with them about this as I believe you are 100% within your rights to this money
 

Other Pineapple Smurf

Honorary Master
Joined
Jun 21, 2008
Messages
14,593
Its interesting about the labourguide link on leave. I've also read where the department of labour encourages the "use it or lose it" policy as a way to get empoyees to take their leave. Its anyway a common practice as its a way to stop employees from accumulating leave over years to get it paid out at a higher salary rate.

But that is why we have CCMA.
 

Beachless

Executive Member
Joined
Oct 6, 2010
Messages
6,003
Why dont you phone the CCMA and hear what they say ?

If you feel you are being treated unfairly then have them come mediate thats exactly their purpose.
 

Other Pineapple Smurf

Honorary Master
Joined
Jun 21, 2008
Messages
14,593
... Commission - I'm sure is illegal to withhold

That we cannot tell you and its all about your agreement. I once forfeited a small fortune but the agreement was that commission was paid on all goods invoice, paid in full and delivered.
 

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
32,700
I don't want to go the CCMA routre or anything yet.

I'd rather say 'see? This link says you must pay me ...' and nudge them
 

noxibox

Honorary Master
Joined
Apr 6, 2005
Messages
23,348
Is that leave total your calculation or do you see the total on a payslip/some other company paperwork?
 
Top