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Company ordered to pay “back pay” to employee of over $185,000…

In a recent Employment Relations Authority case a poorly worded employment agreement cost the employer over $185,000.  The agreement was for a bonus based on annual gross sales over a set figure.

The employee claimed he was entitled to the bonus based on total company sales.  The employer claimed that the bonus was only triggered when the employee’s personal sales exceeded the target.

The ERA held that the clause meant total company sales, and that therefore the employee had been short paid $185,000 over three years of employment.

It pays to get the wording of all your agreements clear.  If you need help give me a call on 04 473 6850.