Commission Employees: Your Pay When the Job Ends

Employees paid fully or partly by commission have the same basic protections under the Employment Standards Act (ESA) as other employees, but calculating what they are owed can be more complicated.

Earned commissions

• Commissions earned before the end of your job must be paid.
• Your contract or commission plan sets when a commission is "earned," for example on sale, delivery or payment. Unclear terms are often read in the employee's favour.

Termination pay

Under the ESA, pay in lieu of notice is based on your regular wages. For employees whose pay varies, it is generally based on an average of your recent earnings.

Common law notice

If your contract doesn't validly limit your entitlement, you may be entitled to reasonable notice at common law, which can include the commissions you would have earned during the notice period.

Practical tips

• Keep records of your sales, pipeline and commission statements.
• Ask for your final commission statement in writing.
• Don't sign a release before checking what you are owed.

Sources

• Employment Standards Act, 2000
• Ontario: your guide to the Employment Standards Act

Read next: Averaging Overtime: How Averaging Agreements Work

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.