Legal Updates

An employee may be entitled to sales commissions even after for payments received by the employer after termination of employment

August 17, 2021

An insurance agent whose employment ended demanded payment for insurance policies sold by him even after his employment was terminated.

The Labor Court held that the employee has the right to receive commissions. An employee may be entitled to commissions after the termination of his employment for work performed in full before the termination, and for which the consideration was received by the employer after the termination. The question of eligibility should be decided according to the law of contracts and the contractual agreements between the parties, which are inferred from the circumstances of the case, written agreements, if any, exchanges, conduct, workplace practice and more. The interpretation of the contract shall be contra proferentem (against the interests of its drafter). Here, the employer was the one who drafted to contract and the agreement is unclear but it seems that the intent of the parties at its execution was the the employee is entitled to commission also after termination. Therefore, the employee has a right to commissions after termination.