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Car allowance and Commission - Advice please!

2 replies

Babylovesmuffins · 11/04/2007 14:09

Please help!

I'm due to go off on maternity leave mid-July and I don't know where I stand legally on car allowance and commission payments.

The law seems to be really unclear on car allowance and commission payments, whilst on maternity leave. Whereas a company car appears to be a valid contractual benefit, there seems to be some confusion over whether a car allowance falls under the heading of "remuneration" or "contractual benefit".

I work in recruitment and I earn commission on people that I place in jobs but it has been hinted to me that I may not be entitled to this whilst off on maternity leave As I look after temporary contract recruitment, many of the people I've placed will continue to work after I go off on leave, and in normal circumstances I would continue to earn weekly commission on them. (However it does say in my contract that "commission is at the Directors' discretion"). I've also been given a business plan to achieve this year, which is slightly less than normal, but as I'll only be at work for one quarter of the year, I think it would be pretty unfair to expect me to achieve a business plan and not get any commission!!

Does anyone know where I stand legally with car allowance and commission?? I'm also entitled to profit share on an annual basis but that's another story

By the way, I've been a loyal employee to the company since we set-up in business 4 years ago and I'm one of their top fee-earners (without meaning to blow my own trumpet too much!) so I am hoping that they will show me some loyalty in return... I have arranged to meet with my director next week to iron out all the formal arrangements about my maternity leave so I'd really love to know where I stand legally.

If anyone has had any similar experience or can advise on this it would be greatly appreciated!

BTW, I am really looking forward to the birth of DS/DD in August and I guess that money won't be the end of the world but I'd really love to be able to afford to have 9 months off to get to know my wonderful baby!

OP posts:
prettybird · 11/04/2007 18:06

Is the car allowwance included on your pay slip as "car allowance" - in which case you should continue to get it.

I'm not an expert though. In my company, they changed us a few years ago from getting cars as perks to beign given a car allowance. In this situation, we do continue to get the car allowance while on maternirty leave.

Think your bonus is mroe difficult, as it does seeom to be more discretionary. I think that though if it is an ongoing commission that you recevice as a result of people being in positions that yuo have put them in, - and that therefroe the company is iteself receving ongoing benefit, you have a good case.

I'm syre that others will be able to come in with more "legalistic" points of view.

Babylovesmuffins · 17/04/2007 19:42

Thanks Prettybird. Sorry for delay in responding but I got nasty food poisoning on Thursday and have been out of action since then...

My car allowance appears on my payslip as a separate entry from basic pay, so it's under the heading of "car allowance", as are "bonus" and "commission".

I have a meeting tomorrow with my director to discuss all my entitlements etc, so fingers crossed!

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