How have commissions been determined in employment law?

The issue arose again in Hobbs v. TDI Canada Ltd. The employee in this case was to be paid on commissions. An oral agreement was reached on commission rates prior to his employment, but the letter offering employment merely said that the rates would be “provided to you in a separate document”. The employee was assured that the “separate document” would be consistent with the oral agreement that had been reached. The employee resigned his existing employment, and joined the defendant. Less than one month after he commenced employment the employee was presented with an agreement that recited commission rates consistent with the oral agreement, but which also stated that the rates were subject to change in the discretion of the defendant. Significantly, it limited the employee’s entitlement to commissions if his employment was terminated. The employee signed the agreement, because he had already resigned his previous employment, and he was told that the document was “non-negotiable”. For various reasons the relationship broke down, and the employee resigned about five months after he had commenced employment. An issue subsequently arose as to whether any consideration had been given for the later document on commissions.