Change in the commission system

If a company wants to implement a new commission system for the commercial team members, replacing the existing model with a sales-based commission model based on collected billing (commission is generated only when the client pays), it is most likely that this will entail a substantial modification of the working conditions.

For a modification to be considered "substantial," it must alter and transform fundamental aspects of the employment relationship. The change in the commission system is substantial when, for example:

• It affects the accrual. It is intended to implement a new condition to be entitled to the commission: effective payment by the client.
• It impacts the amount. This can cause delays in the receipt of commissions or even their non-receipt in case of non-payment by the client, which represents a detriment and significantly alters the remuneration conditions of the sales team.

Exceptionally, if it had been stipulated that the variable remuneration is "discretionary" (meaning that the company unilaterally determines it), the amounts received for that concept would not be consolidable, and the only thing the company would have to do is communicate the criteria periodically. In these cases, there would be no substantial modification.

If within a period of 90 days the modification affects more than 10 people in companies with less than 100 employees, more than 10% of the workforce in companies with between 100 and 300 employees, or more than 30 people in companies with more than 300 employees, said modification will be collective and must be negotiated in a consultation period with the worker representatives. If these thresholds are not met, only the affected workers must be notified of the measure with a 15-day notice.

 

Our professionals will inform you about any doubts you may have regarding the substantial modification of the working conditions.