Is A Sales Executive Eligible For Salary If He Doesn't Bring Business?

Is a person eligible to ask for salary if he has not given the required business
Hi Seniors!
I worked for an organization where there is sales process and executives are supposed to give business to the company. Last month they have not given any business so are they eligible to ask for the salary if they have resigned. Moreover the company has not given offer letter to the employees. they have only given a letter of Intent. they do not even generate any salary slips coz they are new in the industry.
if they do not give salary then what action should be taken against them sio that candidates should get their salary, as all of them are out-stationed candidates.
One more thing i would like to any that is it any required Qualification for Managing Director or a 12th pass out can be a Managing Director?
PLease answer immediately......
Thank You
Bhumika Kaur

Dear Friend,
The Contents of your letter of Intent may be use full to answer your question.
Whether the employees engaged was on commission basis or salary basis???
Further, there is no educational qualfication prescribed under Companies Act for becoming MD of any Company.
Regards

thanks but in Letter of Intent nothing is mentioned apart from the documents which was supposed to submit at the date of joining.... and all of them were on salary basis...

Dear Friend,
If it is so... then the employer has to pay the salary as agreed, provided there is no clause of conditional payment in LOI.
Regards

Hi,
I also faced the same situation; my company paid salary because company considered their service to their existing customers also those employees resigned only after taking their salary.

Hi,
That is the reason sales people are given 40% fixed salary and 60% variable salary depending on achieving targets or vice versa or as the nego decides during the hiring of the candidate for sales profile.
But not giving at all any salary just because someone failed to generate business is unethical and illegal too. The person has invested some time ,effort,if you don't give salary that means a person has just wasted his earning capabilities and time on your company as charity ?
Receiving appointment letter is basic right of any candidate,this kind of issues arise when the company is in to unfair business practices and starts questioning if someone is worth a salary after using them pretty much for few months ! If you are a HR person try to set right the processes, you can't really expect much maturity from 12th pass director but a company survives longer with fair business practices,which you may need to explain to the MD with maturity and tact.
Thanks
Geeta

Dear Bhumika,
Organisation not giving appointment letter, not giving salary and don't want to do full and final settlement of employees.........then what HR department is doing? If you hire employee then you have to pay salary. You can not hold salary of employee by giving mere reason that he is not bringing business. If you are doing this then you are violating the provisions of payments of wages Act and digging a grave for organisation. As per Industry dispute act you have to clear the dues of employee when he resigned or left the organisation. If you are not following law of land then you are inviting trouble. It's seems that your HR policy are in mess better short it out immediately.
For more HR related information:White Eagle

hi..... I was Sr. Training Manager with the organisation. They have girl in HR department who doesn't have any knowledge regarding Hr policies... i donnu kno what gonna hapen... if they do not give salary to my team so can they send them a legal notice?

I’m a fresher and I’m alone working as a HR person in my company, so, I would like to clear few doubts from senior members like youJ.

I’m working for a marketing company, since we are in to marketing, candidates will join and immediately leave with in 2days/a week/ some times till they receive their first month salary. if we give them any appointment letter and complete their joining formalities on the first day itself, wont it be a problem for the company when the new candidate stop coming to office in single no. of days?

Please guide me, because we are not giving any Appointment Letter on the day of joining.
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Hi Akshaya..
I would like to tell you here that Appointment letter is a proof which says that you are permanent in the organisation and generally companies give it in 3 months.
Do you give offer letters at the time of selection of a candidate?
The documentation should be completed on the first day of joining as this is a method to know the person whom you are hiring. so that would not be a prblem....