What is a fare sales commission?

Is it correct to deduct the base salary from the sales commission before I am entitled for a pay out?

• My new employer send me my sales commission plan where they outlined, how my commission is being calculated. In essence, they deduct my yearly base salary from the commission first. They call it a commission bank, but my base salary actually does not incl. a draw or any other upfront commission payment, just my base salary. They designed it that way, that I am entitled to a sales commission only, if I am delivering revenues which are above the previous years revenue numbers. Then they use that as the calculation base line to calculate my commission, of which they then deduct my entire base salary first. Whatever is remaining, is my payout. I never saw a similar commission plan before, and my boss gave me a complete different set up during the interview than what I received today. I am really disappointed! What shall I do?` How should I respond? Many thanks..

• Answer:

  It sounds very logical to me. You apparently have a guaranteed annual salary. They are willing to pay you additional money if you exceed your base. My wife was once employed in an identical way. She had an annual guarantee and received a percentage of sales about a set target for the year.