Our company earn through percentage commissions from their clients. Their argument is that the past several months, the collection has been down, commission is therefore down and thus cannot sustain the business of paying fixed salary. If they continue with the fixed salary, then the business will be closed. They said it is much better to make this move rather than everyone losing their jobs. To compute, if we hit our target collection, then we will normally get the same or above amount as our salary, with their commission scheme.
They are moving from fixed salary to allowance with high commission scheme based on individual collection performance. Is the change in payroll scheme allowed by law?
appreciate your feedback.