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Dispute over commissions for sales agent company

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Original Message Added : 25 Aug 2012
 
My question relates to a business dispute. My company was an agent for a software company. We earned commission on every system that we sold. The agreement came to an end on 10th August 2012 after I told them I could no longer work with them. I said that I didn't need to leave straightaway but did have a possibly opportunity. Two days later they asked me to hand over all information I had and I did not need to do any further work for them. The only agreements we had were verbal and emails. No signed contract. We worked together for two years. They owe my company roughly £20000 and are being very evasive about paying it. The agreement was that they would pay me within 5 days of receiving payment from their ultimate customer. I know they have been paid for a number of invoices that they owe my company money on.

They are claiming that I didn't give them enough notice, but it was them that brought things to an abrupt end and they are also claiming that I lied about where and whom I was going to work for.

They are threatening that I either tell then the truth in which case they will bring things to a swift conclusion or I can not tell them anything in which case I will enter into a long battle with them.

My options please?

Simon Bradshaw from
Advantage Sales & Training Limited
Location :Hartlepool
Joined : 25 August 2012
Contact :Send Private Message
Posts :2  ( 0)
Reply : 26 Aug 2012 - (Edited : 26 Aug 2012)
 
Hi

You must be a good salesmen to have worked for them for 2 years and earned a fair living from your agreement i think leaving without giving them some notice is unfair

i am guessing they are asking you for a client list whom you have been selling there goods to..? they probably think you are going to take there customers..? and in doing so you will cut there profit..? is the info they are asking for a new big client ..?

Then that's not unfair is it.? after all is that not what they have been paying you for....i am also guessing and know how you feel that you have made the contact why not?

as for the money they owe you for work done its just that owed

the way i see it you have 2 choices

1 you can supply the client list and probably walk away with a cheque for the 20.000k i think the choice is yours

2. not supply the info and have a long wait and a long battle with them the solictors could drag it out for months.. with no certain outcome... and will knock a huge hole in 20k and you may loose

you will have to decide is the new cleint relationship with you sound enough for them to do business with you directly .. and how much it will be worth .i am guessing thats the reason for you quiting..? an old idium comes to mind about

"bitting the hand that feeds you"

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lightweight moverslightweight movers from
Lightweight Movers
Location :Gatwick
Joined : 28 October 2009
Contact :Send Private Message
Posts :497  ( 122)
Reply : 26 Aug 2012
 
It is USUAL for a company to ask you to cease work in situations such as this.

a) They don't want you going around bad mouthing them to customers.

b) They want to protect their customer base.

c) They don't want you taking customer information to the opposition which would be bad form & stealing.

d) They don't want you pinching their customers for your own purposes.

Tell them the truth and give them their information back.

Treat them as you would wish to be treated and then they will be more inclined to pay any monies owed.

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Jacqueline DruryJacqueline Drury from
Painter Jack
Location :Nuneaton
Joined : 25 April 2011
About :Painter & Decorator, Artist & Designer, Web Design & SEO
Contact :Send Private Message
Posts :616  ( 257)
Reply : 26 Aug 2012
 
Thank you for taking the time to respond. I think possibly my initial question either didn't have enough detail or was clearly explained. I tried to give them plenty of notice. Whilst we had no agreement it was always suggested we would give each other plenty of notice, which is what I was trying to do. It was them who said they wanted to draw things to an end straightaway. I accept that they did not want me to stop working for them. I haven't taken any information from them, nor would I ever take information from anyone. I don't work in that way. They are suggesting that I haven't been honest with them about who I am going to work for, however I was. I have no interest in taking their customers or hurting their business in anyway, in fact any clients that have asked me why I am no longer working with them have been told it was no reflection on the company or the product and I was happy to say that they would have no problem with any future support from them. I have no interest in bad mouthing them. Their product is very good. I have no interest in their customer base. I have no customer information to take with me. I am not interested in taking any of their customers; in fact I wish them all the best for the future. At the end of the day things were not working for me working with them and I needed to protect myself and safeguard my future by working for someone else. I tried to give them notice and it was them that wanted to stop working together with immediate effect. The money that I am owed is money that I have earned fairly and is only a small percentage of the invoice and money that they will receive from their ultimate customer.

Simon Bradshaw from
Advantage Sales & Training Limited
Location :Hartlepool
Joined : 25 August 2012
Contact :Send Private Message
Posts :2  ( 0)
Reply : 27 Aug 2012
 
OK well if that's the case the first thing that comes to mind its none of there business who you decide to go and work for

write them a nice letter and explain that you have no idea what information they are asking for and emphasise that they need to be specific as to why the payment is being withheld

is 20 k a normal amount they pay you? it could be they just don't have that sort of cash in the bank if the payment system they have had with you in the past is reliant on your sales and paid in arrears From customers and new business you bring in then i think you may well be in a very difficult position

if there credit is extended to the max they may not be able to bring up to date the outstanding balance in one go as so often happens when a company goes broke the receivers are left to clear up the mess as best they can and its usually the staff that don't get that last months pay etc

so where to go from there i suppose it will depend on there reply i suggest you don't email them any more try to get a reply in writhing from them as to why they wont pay you once its clear of there position you can take some action and that has to be a recovery route.

what is owed is just that and you need to be paid

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lightweight moverslightweight movers from
Lightweight Movers
Location :Gatwick
Joined : 28 October 2009
Contact :Send Private Message
Posts :497  ( 122)
Reply : 29 Aug 2012
 
How long has the money they owe you been outstanding. Normally you couldn't start any claim against them until at least 60 days are up and usually a lot longer than that. 5 days seems a very short time. If you haven't got that written in a contract it's going to be very difficult to uphold.

If you announced to them fairly suddenly that you were leaving then you've probably left them in a very tight spot. You said that you'd agreed to give a long period of notice. How long did you give them when you announced your decision? I presume you had another contract/job to go to when you gave them notice unless you're a man of private means. If they thought your leaving was imminent (rather than months) they probably just wanted to make it a clean ending, that's what every employer/contractor does.

If the whole problem can be solved simply by giving them a full account then my advice would be to do it. To some extent it's none of their business but if they feel you've let them down, maybe justly, and and all they need is an explanation then just go and give them it. If they've been left in the dark about why your decision happened they probably feel hurt and hoodwinked. You've everything to gain by telling them and a lot to lose if you don't. Legal battles are horrid, time consuming and very expensive, especially where companies are concerned.

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Nick Johnson from
Henleys Electronics
Location :Newcastle upon Tyne
Joined : 29 August 2012
Posts :5  ( 2)
 
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