“ 8.1 The Employee will be paid a commission calculated as follows: (a) in each Commission Year, in relation to the profit costs invoiced by the Employee in the aggregate amount that exceed three times the amount of the Employee’s Salary (e.g. 3 x£38,000 ) of such Commission Year, twenty per cent (20%) of such profit costs that exceed three times the amount of the Employee’s Salary of such Commission Year which are invoiced by the Employee and which are subsequently paid to the Company by the relevant clients, in respect of the work carried out by the Employee whilst acting as a solicitor to the Company; and … 8.2 On or before the last working day of each calendar month during the Appointment, the Company will agree a statement of account in relation to all sums due to the Employee pursuant to clause 8.1, for the avoidance of doubt all calculations of the sums due to the Employee pursuant to clause 8.1 shall be calculated against the relevant net profit costs received by the Company excluding disbursements and VAT on such profit costs. 8.3 All relevant sums due to the Employee pursuant to clause 8.1 shall be payable monthly in arrears following the month such sums are received by the Company, on or about the last working day of each calendar month directly into the Employee’s bank or building society account, save that the Employee shall not be entitled to receive any sums pursuant to clause 8.1(a), until such time as the profit costs invoiced by the Employee in a particular Commission Year, in respect of the work carried out by the Employee whilst acting as a solicitor to the Company, are in an aggregate amount that exceeds three times the amount of the Employee’s Salary in that same Commission Year.”
“During the appointment each 12 month period, the first of which begins on the commencement day and ends 12 months following.”
“the first six months of the employment shall be a probationary period…”
“The Employee will carry out residential property, commercial property and licensing law related work for the Company, in addition to work in other areas of law agreed with the Company and the Company considers to be within the Employee’s expertise as a solicitor.”
“(b) 10 per cent (10%) of the profit costs invoiced by other fee earners of the Company and which are subsequently paid to the Company by the relevant clients, in respect of the initial piece of work introduced by the Employee and carried out by other fee earners of the Company.”
“20. In the same communication the respondent set out, for the first time, its detailed position as to the calculation of commission for the 2021-2022 Commission Year. It stated that the amount apportioned to the claimant for work on Colombia House would be reduced from the previously agreed 60% to 51% and that on all other invoices the apportionment to the claimant would be 65%. This led to an overall figure of£106,784.56 being apportioned to the claimant, short of his commission threshold of£114,00 . 21. The files listed within the claimant’s spreadsheet were files that he had been given by the respondent to run himself as a newly qualified solicitor. Once completed he billed the work and ensured it was invoiced. The invoices were calculated on a fixed fee basis. The claimant was supervised by partners within the firm over the course of this Commission Year and on occasion will have been assisted by trainee solicitors within the firm. The respondent accepted that there was very limited time recording taking place on these files in relation the work that anyone other than the claimant was engaged in. The law 22. Pursuant tosection 13(1) of the Employment Rights Act 1996 (the ‘ERA’): ‘An employer shall not make a deduction from wages of a worker employed by him unless – (a) the deduction is required or authorized to be made by virtue of a statutory provision or a relevant provision of the worker’s contract, or (b) the worker has previously signified in writing his agreement or consent to the making of the deduction.’ 23. Section 13(2) of the ERA refines ‘relevant provision’ as a provision of the contract comprised - (a) in one or more written terms of the contract of which the employer has given the worker a copy on an occasion prior to the employer making the deduction in question, or (b) in one or more terms of the contract (whether express or implied and, if express, whether oral or in writing) the existence and effect, or combined effect, of which in relation to the worker the employer has notified to the worker in writing on such an occasion.’ 24. Section 27 of the ERA provides – (1) in this part ‘wages’, in relation to a worker, means any sums payable to the worker in connection with his employment, including – (a) any fee, bonus, commission, holiday pay or other emolument referable to his employment, whether payable under his contract or otherwise…’”
“I interpret the wording of the contract as requiring the respondent, quite simply, to pay the claimant commission of 20% on the amount invoiced by the claimant in excess of a threshold of£114,000 .”
“There was no evidence before me of the respondent keeping the necessary records to properly engage in an exercise of apportionment on the claimant’s files. Instead the respondent’s position was that it had the discretion to identify blanket percentages of apportionment at the conclusion of the Commission Year. If that was correct I would expect wording to that effect to be contained within the contract and an indication of that approach in the statements of account required by clause 8.2”
“Not only did I lead the project every day and do the majority of the work, apportionments of invoices were not in my contract.”
“8. To conclude my position, I would like to reiterate that the purpose of this claim is that the Employer settles the commission that I believe is owed to me under clause 8 of my Contract. Upon reading the remarks of the Employer in their EC3 form, it is clear that the Employer has a completely different understanding of the relevant clauses and as a result believes that no commission is due. It is admitted that it is inevitable that slightly different interpretations can arise in this context, but I would argue that the interpretation that the Employer seeks to rely on is a substantial deviation from the Contract, that has the effect of varying the Contract. 9. If the interpretation applied by the Employer was their genuine intention at the time of drafting the Contract then I would argue that the wording of clause 8 in the Contract has been poorly drafted by the Employer and has created ambiguity, as evidenced by the Employer’s need to review how the commission clauses would be “applied in employee’s contracts” and “how they would be calculated”, as outlined in 7(e) of this statement and para 10 of the EC3 form. As such, had the Contract correctly reflected the Employer’s intentions then it is likely that I would not have ever entered into this Contract, and would have sought employment with a different firm. Instead, my expectations during this year of employment were misled.”
“This second stage of apportionment was applied as a blanket percentage across all of the claimant’s files and as such did not and could not have involved an analysis of the specific contributions made by supervising partners and trainees on individual files which inevitably would have led to a variety of different percentages”
“There was no evidence before me of the respondent keeping the necessary records to properly engage in an exercise of apportionment on the claimant’s files. Instead the respondent’s position was that it had the discretion to identify blanket percentages of apportionment at the conclusion of the Commission Year.”
“8. The Claimant mostly worked as my assistant, so I was acutely aware of what he could do having also been his Training Principal. We had weekly or fortnightly meetings to discuss all matters he was working on, as set out in his updated list of current matters that he was required to produce every week. During those meetings I gave directions and confirmed where pa rtner input and billable time would be needed . Also, where the input and billable time of other fee earners would be needed. We also had ad hoe meetings daily, as and when was necessary to progress the relevant matter. … 10. The Claimant whilst hardworking carried out his work within the professional limitations of a newly qualified solicitor as follows: the Claimant could only produce first drafts of key documents and first drafts of complex correspondence to other parties, each needing subsequent amendment and checking by supervising partners; the Claimant wasn't able to negotiate a commercial lease or other commercial documents over the phone or on his own; on all commercial property transactions and any other commercial or finance matters the Claimant provided assistance only, as he didn't have the requisite knowledge to run the transaction; the Claimant often didn't grasp the overall transaction structure in more complex multi layered transactions; the Claimant lacked the commercial/business acumen to advise clients completely; and lacked relevant background legal knowledge. I make these points as these are common limitations of junior lawyers that also applied to the Claimant, it is what I would have expected from a newly qualified solicitor requiring constant supervision such as the Claimant.”