Commission-based pay works well when the relationship is going smoothly — it aligns incentives and rewards performance. It becomes a source of real friction the moment the relationship ends, or a big deal closes right around the time someone's employment status changes. That combination of money, timing, and an ending relationship is exactly why unpaid commission disputes end up in Small Claims Court so often.
Why commission disputes are so common
Salespeople, real estate agents, recruiters, and other commission-based workers are frequently owed money for work that was substantially done before their employment or engagement ended, but that did not get paid out — either because the deal had not yet technically closed, because the final invoice was disputed, or because the employer simply took the position that the departure cut off the entitlement. These situations are common precisely because commission income often depends on a chain of events (a sale, a signed contract, a closing, a client payment) that does not line up neatly with an employee's or contractor's last day.
Why the commission agreement is everything
In almost every commission dispute, the single most important piece of evidence is the actual commission agreement or plan — whether that is a formal written document, an offer letter, an email describing the structure, or, in some cases, whatever can be shown about a verbal understanding. The agreement (or the best available evidence of it) is what determines the rate, when commission is considered "earned," and what happens to pending deals if someone leaves. Courts generally look first to what was actually agreed, so tracking down every version of the plan you can find — including older versions if the terms changed over time — is usually the most useful first step.
When the commission plan is unclear or ambiguous
A surprising number of commission disputes come down to a plan that simply was not written carefully enough to anticipate the situation that actually happened. Vague language about when a sale is "closed" or "completed," missing language about what happens to pending deals on departure, or a plan that was communicated informally and never fully written down are all common sources of dispute. This ambiguity is not automatically bad for the person claiming commission — a legal principle sometimes described as construing ambiguous contract language against the party that drafted it can, in some circumstances, work in the claimant's favour when the employer or company controlled how the plan was written.
The most common types of commission disputes
A few fact patterns come up again and again. One is commission that was clearly earned before termination but simply was not paid out — for example, on a final pay cheque. A second is a dispute over whether a particular sale or deal was actually "earned" before someone left, especially where a deal closed shortly after departure and the employer argues it does not count. A third is a dispute over the commission rate or calculation itself — for instance, disagreement over which expenses or discounts should reduce the commissionable amount, or whether a bonus threshold was actually met. Identifying which of these categories your situation falls into helps focus what evidence you need.
The Employment Standards Act and choosing the right forum
Ontario's Employment Standards Act, 2000 generally requires that wages — a term that can include earned commission — be paid to employees. That overlap between employment standards law and an ordinary debt claim is part of why unpaid commission claims can be pursued in more than one place. Many practitioners informally treat employment-related money claims with some caution once they climb much above roughly $35,000, given that the Ministry of Labour's employment standards process covers some of the same ground and has its own rules and limits. This is a general observation about how these claims tend to be handled in practice, not a hard legal rule, and it is worth confirming which forum actually fits your specific amount and circumstances — see employment-related claims for more on how that line is generally drawn, and the eligibility tool for a general sense of whether Small Claims Court fits.
Evidence that helps prove a commission claim
Because these disputes usually turn on what was agreed and what actually happened, the most useful evidence tends to be: the commission agreement or plan itself, in whatever form it exists; sales records, CRM entries, or invoices showing the deal, its value, and its timeline; pay stubs or statements showing how commission was calculated and paid in the past; and any emails, texts, or other correspondence in which the dispute — or the commission structure itself — was discussed. Organizing this evidence chronologically, from when the deal started to when the dispute arose, makes it much easier for a decision-maker to follow.
Frequently asked questions
I quit before a deal closed. Can I still claim the commission?
It depends entirely on what your commission plan says about when commission is considered earned. Some plans tie earning to the sale closing regardless of employment status at that point, others tie it to being actively employed when the deal closes. Read the plan closely, and if it is silent or unclear, that ambiguity can sometimes work in your favour.
My commission agreement was verbal, not written. Do I still have a claim?
A verbal agreement can still be enforceable, but you will need to prove its terms some other way — through pay stubs showing past commission payments, emails or texts discussing the arrangement, or consistent past practice. The lack of a written agreement makes proof harder, not impossible.
Does Small Claims Court handle unpaid commission claims?
It can, particularly where the claim is a specific, quantifiable amount and fits within the monetary limit. Many practitioners informally treat employment-related money claims cautiously above roughly $35,000 given overlapping Ministry of Labour jurisdiction, so it is worth confirming the right forum for your specific amount and situation.
What evidence do I need to prove unpaid commission?
The commission agreement or plan document, sales records or CRM data showing the deal and its value, pay stubs showing your commission history, and any correspondence in which the dispute was raised or discussed are typically the most useful evidence.