Sales commissions are deemed part of the base salary

A salesperson's salary was based on a base salary and 5% of the sales made by her. After she was terminated, she demanded severance pay both from the company she worked for and personally from the shareholder of the company, who after termination of employment commenced activating the entire business operation through her business.
The Court held that the employee is entitled to severance pay, social benefits and redemption of vacation days based on her average 12 months pay-check prior to termination. In order to determine whether a bonus is a part of the base salary, one needs check whether the payment given was contingent, so that if the pre-condition or situation is not met, the payment will not be made. Payment that is not contingent is deemed an inseverable part of the salary taken into account in calculation of severance pay. If the employee's remuneration includes commissions, her base salary is calculated as the average actual salary of the last 12 months prior to termination. Because the salesperson received monthly sales commissions, she is entitled to severance pay, social benefits and vacation redemption based on a base salary that includes the commissions. Here, the business in which the employee worked was closed and the activity transferred to a business of a shareholder and thus, the shareholder is personally liable for the debt to the salesperson.