Some employees, depending on the department they work in, can be more difficult to furlough or lay off than others. Sales professionals, for example, can be slightly more difficult to handle than others. 

Many sales professionals are paid using commission agreements, wherein they earn a percentage of the sales they bring in to the business. These are designed to motivate the salesperson and align their interests with that of the company.

According to the Harvard Business Review, “For example, a company wants an employee’s maximum output, but a salaried employee may be tempted to slack off and may be able to get away with it if the company can’t observe how hard the employee is working. Most incentive or variable pay schemes—including stock options for the C-suite—are attempts to align the interests of principals and agents. Commission-based plans for salespeople are just one example.”

When an employee is terminated, it’s your responsibility as an employer to pay the employee the full value of the compensation that he or she had earned up to that point. Full compensation includes salary and wages, vacation pay that was earned but unpaid, and of course commissions.

While paying salary, wages, and vacation are fairly simple, commissions are another story. Commissions are almost always based on future sales and paid out only when the deal closes and the customer pays

While it would be impossible to calculate the final payment of a commission until the sale is complete and payments are received,  “a majority of states have wage payment laws that outline the specific requirements for the payment of commissions to terminated employees,“ according to SHRM.

Employment agreements may also list how it was agreed upon at the hiring stage. This must be reviewed to make sure the company follows through with its responsibilities of the legal contract.

Communication with the employee is important so they don’t assume you don’t plan to pay. A conversation during termination that lays out the plan for payment is needed and so is follow-up during the duration of time until the final payment is sent.

Make sure you keep these issues in mind when planning your reduction in force. It’s the often unforeseen conditions like these that can cause headaches for employers in already stressful times.