How Much Is My Employer Entitled to?

Lbomhee13 on 16/11/2017 - 12:17

Hi,

I am recently seeking a raise for meeting billing target, but after meeting with my employer, they have suggested reducing the cut I get from billing clients on the basis that they are clients that he has brought in. Are they entitled to do this, and if so, by how much?

Please keep in mind that

  • I undertake all the work to provide the client with our services.
  • Our billing target works based off 3x our salary so he already receives 1/3 for himself and 1/3 for overheads.
  • In this particular case, it is not based upon hours worked - so they think that I should only get my charge out rate and he gets the rest.

I am quite new at this so forgive any ignorance if any, and I would appreciate any help on this!

Cheers

Education & Work

Comments

  • dom on 16/11/2017 - 12:27

    Are you saying you asked for a pay-rise and they countered with wanting you to take a pay-cut?

    • bomhee13 on 16/11/2017 - 12:34

      No, he's happy with a pay rise, but thinks I am being allocated too much for my billing target, and thinks that he should get some sort of percentage.

      • HighAndDry on 16/11/2017 - 13:01
        +4

        Well then that's a pay negotiation. There's no "entitled" in this situation - you get what you can negotiate, if both sides agree. If you can't agree, either of you is free to walk.

  • smashed on 16/11/2017 - 12:28

    Surely it will come down to what is in your contract?

    • bomhee13 on 16/11/2017 - 12:35

      There is nothing in my current contract that states or explains this point, but is talking about how he wants to cut how much gets allocated to my billing target in future.

      • smashed on 16/11/2017 - 12:37

        If you have no contract then I guess he can do what he likes..but I am no lawyer.

  • original15 on 16/11/2017 - 12:40

    I read it like this
    Let's say for simplicity:
    Guy gets paid 100k
    His target is 300k

    Guy has gone above target and wants 1/3 of whatever he has delivered/sold as per initial break down of wage/target
    Is that right??

    • bomhee13 on 16/11/2017 - 12:46

      I already receive 1/3 of whatever I have delivered, however I am quite a bit ahead of billing target. Again, he is happy with a raise, but thinks in future he should get a cut of what I have billed.

      • Yttrium on 16/11/2017 - 13:00
        -1

        He already gets a 2/3 cut ???

  • TheBilly on 16/11/2017 - 12:46
    +5

    If I got paid as a percentage of profit targets, I would be so rich. Sorry OP, that's why your employer is a business owner and you are an employee - they took the risk for business ownership and reap the rewards, they hired you to do the ground work and you accepted the salary compensation. Unless the market dictates in your industry that you should be paid in that fashion, you can have a crack, but it really depends what people are getting elsewhere in the same line of work and what the market is dictating at the time.

  • HighAndDry on 16/11/2017 - 13:02
    +2

    What industry? There are industry standards, but nothing is binding - only what you agree with your employer.

    I mean - if you get 1/3 of your charge-out rate, that's already VERY high compared to some industries.

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