Saul & Co v Rashbrook – Unlawful Deduction from Wages
If three employees complete work on the same file, is it fair for only one to pocket all the commission?
The Claimant in Saul & Co v Rashbrook argued that it was.
What happened?
- Mr Rashbrook was a solicitor, employed by Raymond Saul & Co LLP under a contract with a commission scheme.
- The clause stated that in each commission year he would be entitled to 20% of profit costs invoiced to him.
- To qualify those invoices needed to exceed three times his salary.
- The contract also made it clear that commission was only payable for work “carried out by the Employee whilst acting as a solicitor to the Company.”
- Mr Rashbrook interpreted this to mean that the commission calculation should be based on all invoices issued on files under his name.
- Even if other employees had also worked on those files.
Originally, the employment tribunal agreed with Mr Rashbrook.
Raymond Saul & Co LLP appealed the decision.
The claim was dismissed upon appeal.
- It was held that the contractual wording must be given it’s natural and ordinary meaning.
- “Work carried out by the employee” was held to mean only Mr Rashbrook’s own work.
- It was held that the commission payments attributable to other employees must be excluded.
- Once they were excluded, Mr Rashbrook fell short of the threshold for commission payments.
- There was nothing for him to claim for and his claim failed.
Why does this matter?
This case highlights the importance of record keeping and clarity in company policies. Don’t fall into the trap of ambiguous clauses!
What can HR do to prepare for this?
Clarity in commission clauses. Do not leave room for alternative interpretation!
Ensure accurate and up-to-date timesheets.
Ensure reviews of policies and procedures.
Need help?
At PJH Law we specialise in Employment Law, feel free to call our office on 01780 757589 or visit our website to get in touch!
