ERA ruling shows why bonus schemes must be clearly documented
10 May 2025
Share
The Employment Relations Authority (ERA) recently dealt with a case involving a sales and marketing specialist who claimed she was owed a significant amount in unpaid sales commissions. The worker had resigned from her position after being employed for approximately five years.
The worker argued she was entitled to receive over $40,000 in commission payments, while her employer maintained they had correctly paid her just under $3,400. She based her claim on a table provided alongside her employment agreement and her understanding of which sales should be included in calculations.
The dispute raised questions about what makes terms binding in employment agreements, how incentive schemes should be documented, and whether previous payment practices create ongoing entitlements.
The worker was employed as an asian market sales and marketing specialist at a company that manufactures and markets herbal extracts. Her most recent employment agreement was signed in June 2021, with a cover letter stating "the China sales incentive has been reinstated, effective 9 June 2021."
Despite this mention in the cover letter, the employment agreement itself contained no details about how the incentive scheme would function. There were no terms or conditions about the scheme in the agreement, its attached schedule, or the job description.
The employment agreement included...
VICTOR VALLEY, Calif. (VVNG.com) — The San Bernardino County Sheriff’s Department is warning residents about a growing wave of misinformation across the county, fueled by viral social media posts ...