You spent the quarter chasing targets, closed the deals, and watched your commission disappear into a “discretionary review” or get reclassified as forfeited because you resigned a week before payday. Unpaid commission and bonus disputes are some of the most contested wage claims in Australia — but in most cases, if the commission was earned under the terms of your contract, it is legally owed.
The legal context — contract first, Fair Work Act second
Commission and bonus entitlements are usually governed by your written contract or a separate commission plan. Once the contractual conditions for the commission have been met — sale closed, target hit, invoice raised, whatever the trigger is — the amount becomes a debt. Section 323 of the Fair Work Act 2009 requires employers to pay all “amounts payable” to an employee in full and in money, and Australian courts have consistently held this captures earned commission. The Fair Work Ombudsman regulates the underpayment side. If the dispute is purely contractual (e.g. the commission rate or the trigger is in dispute), it can also be litigated as a breach-of-contract claim.
Common employer defences and why they fail
- “Commission is discretionary.” Only if the contract genuinely says so. Many “discretionary” labels don’t survive scrutiny when the plan documents a formula.
- “You weren’t employed on payment date.” Forfeiture-on-resignation clauses are increasingly viewed as unenforceable penalty clauses where the commission was already earned.
- “The customer hasn’t paid yet.” Whether that’s a valid trigger depends on the wording of your commission plan — many plans pay on invoice, not on receipt.
- “We’re recalculating clawbacks.” Clawbacks must be expressly authorised in writing and meet the section 324 Fair Work Act test for lawful deductions.
The Letter of Demand approach
A Letter of Demand sets out the contractual basis (the specific clause of your contract or commission plan), the deals or targets that triggered the commission, the calculation, the total owed, and a 14-day deadline. Citing both the contract and section 323 of the Fair Work Act puts the employer on notice that you understand the dual basis of the claim. Most employers prefer to pay rather than risk an FWO investigation or a public breach-of-contract proceeding.
What Claim Done delivers (flat $79)
Answer a short wizard about your contract, the commission trigger, the deals or targets, and the calculation. Claim Done produces a Letter of Demand referencing your contract clauses and the applicable Fair Work Act sections, ready to send as a polished PDF.
What to expect — and the Fair Work escalation
Most commission disputes resolve at the Letter of Demand stage because the alternative — having the commission plan and forfeiture clauses publicly examined — is unattractive to employers. If yours doesn’t pay, options include a Fair Work Ombudsman complaint (for the wage-underpayment angle) and a small-claims breach-of-contract proceeding in the Federal Circuit and Family Court or the relevant state magistrates’ court.