Title: Forced to go from salary plus commission to commission only
My company may move me from a salary plus commission position to commission only. If I do not accept the terms, am I, in essence quitting and therefore they do not owe me any severance (that they would have given me if they laid me off), or should they pay me the normal severance that they have given other laid off salesmen in the past?
Hi Dan,
Thank you for your question. In general, employees in California do not have a right to receive severance pay.
If, however, your employment contract requires you to be given a severance package in the event of your termination, you may be entitled to receive severance. It is also possible that other employment materials might be considered contractually-binding, like the employee handbook, that include information about how your employer structures its severance agreements.
An accurate answer would depend on the the terms of your agreement. Specifically, I would need to see the language that gives you a right to receive a severance package. What conditions need to be met for that right to be enforceable?
If there is no language in your employment agreement (or any other employment materials) that gives you a right to a severance package, then it would be solely up to your employer whether they choose to offer you one.
My best advice would be to consult with an employment attorney about your specific situation. They can review your employment-related documents and determine whether you have a right to receive a severance package.
I hope this information helps. You might also want to look into the impact that this decision would have on your ability to collect unemployment insurance benefits.
Please remember that this information does not constitute legal advice and should not be relied on. Nor does it create an attorney-client relationship.
I wish you the best of luck in your situation!