Gordon works as a salesman in the Orange Computers Ltd store. His…

Question Answered step-by-step Gordon works as a salesman in the Orange Computers Ltd store. His… Gordon works as a salesman in the Orange Computers Ltd store.  His contract of employment provides for an annual salary of £10,000 and commission payments (at 9%) on any computers and peripherals he sells.  In the last three years, the commission payments have amounted to an average of £11,000 per annum.In 2015, due to cut throat competition in the local market, the business is adversely affected.  The manager, Fred, informs Gordon that the business is in severe financial trouble and that he must reduce the firm’s outgoings.  In response, Fred asks Gordon if he will forgo his salary for 2015, 2016 and 2017, and simply accept payments of commission.  Fred explained to Gordon that this was required of him (and all other staff) or the business would probably not survive and it would have to be wound up owing substantial debts to creditors.  As such, Gordon accepted the variation of the contract.In 2016, the economy began to grow, and in small part due to governmental incentives for investment in information technology, the store has managed to trade its way through the difficult times and is making a healthy profit.  As such, Gordon feels that he should be able to receive his wages for 2017 and not simply have to rely on his commission as agreed in 2015.  He also wishes to know if he can claim for his wages from 2015 and 2016 as Orange Computers Ltd has sufficient profits to repay this money. Advise Gordon whether he can obtain his wages for 2017, and also whether he would have any claim for the wages he agreed not to accept in the year 2015 and 2016.  Discuss in context of contract law & employment Law. Business Management Business Law BCOM 411 Share QuestionEmailCopy link Comments (0)