Commission sales rep with company 34 1/2 years. Traveling throughout Central East Ontario selling to dealers I visit on a regular basis. Office in home and responsible for all my expences-car, phone,etc. 68 years old.
Company is a national distributor and I have set territory boundaries.
I have a fiscal budget of $2.9 MM that I am responsible to meet as agreed with a yearly agreement signed. After change noted below company has now adjusted this number to $2.2 MM.
Last 3 years commission $90000, $95500, and $101731 respectively.
1 account I serviced bought direct from the manufacturer in US and my company serviced the logistics and also apparently received a percentage of sales to pay my commission. This companies sales projections were included in my agreement and not separated. In other words their numbers were part of my overall remuneration and responsibility as.
At the end of July the manufacturer gave 1 week notice that my servicing part of the funding was being discontinued.
This represented 21.2 % of my commissions paid this year to date.
When I asked my company to compensate for the difference, the answer was that it was the manufacturer decision and not their responsibility. I would have to make up the difference selling more to other accounts, which is not feasible.
So my income is significantly reduced and the company feels I should get no compensation consideration.
I believe this may constitute CONSTRUCTIVE DISMISSAL
The reduction in income seriously affects my ability to maintain proper perspective in covering my expenses.
I was planning to work 2 more years til I am 70 and the company has always been aware of this.
I now have to decide whether to initiate legal action on Constructive dismissal grounds or not spend the money if there are no grounds to continue.
I would appreciate your thoughts as to if I have any chance of settlement severance.
Thank you