Trial Win: Fired B.C. salesperson awarded $6,500 in accrued commission

Barr v. D.N. Services Ltd. dba Wolfgang Commercial Partners

Samfiru Tumarkin LLP successfully secured $6,500 in accrued commission for our client in the case of Barr v. D.N. Services Ltd. dba Wolfgang Commercial Partners.

The matter was argued at the Provincial Court of British Columbia (BCPC).

Overview of the case

In 2011, George Barr began working at D.N. Services as a “Sales Representative.” His compensation was a mix of base salary and commission, which was paid out through annual bonuses.

Each year, Barr was required to sign a new employment contract. Starting in 2016, his agreements began to include a termination clause that would limit his severance entitlements if he was fired without cause or let go.

If he didn’t sign the new contracts, he risked losing eligibility for his annual bonuses, which were up to 50 per cent of his total compensation

In April 2020, Barr, who held the title of “Senior Sales and Project Manager“, was fired by the company.

While the BCPC ruled the termination provisions in Barr’s agreement were enforceable, the court found that the wording used to limit his bonus entitlements was ambiguous and should be interpreted in his favour.

As a result, Barr was awarded $6,500 in accrued commission.

Facts

• In 2011, Barr begins working at D.N. Services as a “Sales Representative”. His initial employment contract doesn’t contain a termination clause.
• Barr continues to accept new employment contracts from the company each year. Each agreement includes a modest increase to his base salary.
• In 2015, Barr earns a significant amount of commission after a particularly successful year for the company.
• In 2016, Barr reviews the new employment contract he received from D.N. Services.
• For the first time, Barr’s agreement includes a termination clause that limits his severance pay if he is fired without cause or let go. The contract also states that if he is terminated at any point during a given year, he isn’t entitled to his commission for any sales made during that year.
• Even with the new termination clause, Barr continues to accept new employment contracts from the company to avoid losing eligibility for his annual bonuses.
• In April 2020, Barr was fired without cause by D.N. Services and received eight weeks’ pay in lieu of working notice.
• Prior to his dismissal, Barr, who held of the title of “Senior Sales and Project Manager”, had earned approximately $6,500 in commission from his sales for the first four months of 2020. He didn’t receive any of his accrued commission upon termination.
• Barr immediately started searching for alternative work and secured new employment in July 2020.

The Court’s Decision

The BCPC ruled that the termination provisions in Barr’s employment contracts were enforceable because he received a small raise each year from D.N. Services.

However, the court agreed with Samfiru Tumarkin LLP’s argument that his contract also contained contradictory language regarding whether he would be entitled to accrued commission if he was fired without cause or let go.

In one instance, Barr’s agreement stated the he “will receive an annual bonus…”, while another section claimed that “no bonus will be paid if the employee quits or is terminated prior to the specified payment dates.”

The BCPC ruled that the wording created ambiguity and should be interpreted in Barr’s favour. As a result, the court awarded him $6,500 in accrued commission.

SEE ALSO
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts
• Paid enough? How to calculate severance pay

Lesson for employees

• Don’t accept a new employment contract until you speak with an employment lawyer: If you receive a new agreement from your employer, never sign it on the spot. Employment contracts often take away key protections that would otherwise be available to you. An experienced employment lawyer at Samfiru Tumarkin LLP can review the document, ensure that your workplace rights aren’t being unfairly limited, and help you secure the compensation you deserve.

Lesson for employers

• Double-check that your employment contract is clear and accurate: While D.N. Services was successful in limiting the amount of severance pay that Barr was entitled to when he was terminated, the company ultimately had to provide additional compensation because the agreement contained contradictory language regarding his bonus entitlements. If you aren’t sure that your employment contract is clear and accurate, contact an experienced employment lawyer at Samfiru Tumarkin LLP. We can review the agreement and ensure that it’s free of ambiguity.

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our employment lawyers in B.C. can review your situation, enforce your workplace rights, and ensure that you receive the compensation you are owed.