Full question:
I'm in sales and my company may be sold. My contract states: 'If terminated with cause, no commissions will be paid after the termination date'. Would the sale of the company (and my not being part of the acquired assets) constitute termination with cause in which case I would lose all my commissions?
- Category: Employment
- Date:
- State: California
Answer:
The answer will depend on whether the term "for cause" is defined in the applicable contracts or employee handbooks, etc. Typically, cause implies wrongdoing or inability to perform duties on the employee's part. Just cause is legal jargon for a legitimate business reason, such as wrongdoing on the employee's part. Just cause is often a matter of interpretation by the courts or arbitrators.
Some of the factors that may be examined to determine whether just cause existed for a disciplinary action or firing include:
-Did the company warn the worker in advance of taking action?
-Is there a clearly communicated work rule which covers the conduct and which is reasonable and related to the orderly, efficient and safe operation of the employer’s business?
-Did the employer investigate before taking action?
-Was the investigation fair and objective? Does the supervisor serve as prosecutor, judge and witness all rolled into one?
-Is there substantial evidence that the worker is guilty?
-Has the employer been fair and even-handed in its enforcement of the rule(s) in question? Is there "disparate treatment?"
-Was the degree of discipline related to the seriousness of the worker’s offense and worker’s prior work record.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
