Claimant v CMS Group Ltd
Outcome
Individual claims
The tribunal found the respondent made unauthorised deductions from wages totalling £1,991.64 in commission payments. The claimant was entitled to commission on contracts entered into by 31 October 2024, not only on contracts that had been invoiced. The contract did not specify that invoicing was required before commission was due. The respondent also failed to pay £68 in commission on the Lightblue contract that was contractually owed based on the first-year contract value.
The respondent breached the claimant's contract by paying notice pay based on a salary of £35,000 instead of £40,000. The tribunal found the managing director had verbally agreed to increase the claimant's salary to £40,000 from May 2024, and this was later confirmed in writing by the chief executive on 31 October 2024. The payment in lieu of notice should have been calculated on the £40,000 salary as at the date of termination.
Facts
The claimant was employed as an account manager from November 2023 to October 2024. In April 2024, the managing director verbally agreed to increase his salary from £35,000 to £40,000 from May 2024, but this was never actioned. The claimant resigned in September 2024, and his employment was terminated on 31 October 2024 with payment in lieu of notice. The respondent paid notice pay based on the original £35,000 salary and withheld commission payments on contracts that had been agreed but not yet invoiced.
Decision
The tribunal found in favour of the claimant on both claims. The respondent made unauthorised deductions from wages by failing to pay £1,991.64 in commission on contracts entered into before termination but not yet invoiced, as the contract did not require invoicing before commission was due. The respondent also breached contract by paying notice pay based on £35,000 instead of the agreed £40,000 salary, awarding damages of £1,057.69.
Practical note
Commission clauses should specify clearly when commission becomes payable (on contract signature, invoice, or payment); verbal salary increases can be contractually binding even without written confirmation, particularly when subsequently acknowledged by senior management.
Award breakdown
Award equivalent: 4.0 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 6021461/2024
- Decision date
- 16 October 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Name
- CMS Group Ltd
- Sector
- professional services
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Account Manager
- Salary band
- £40,000–£50,000
- Service
- 1 years
Claimant representation
- Represented
- No