Absa breaks its brokers


Absa breaks its brokers

Over a decade, 160 short-term brokers have been forced to repay some R10m of their salaries.

Flogging insurance for the Absa Group is a hazardous affair for its commission-based short-term broker staff. As with the Mafia, once you're in, it's very difficult to leave - resign, and you're likely  to be dragged into court and ordered to repay 75% of the "salary" they paid you.

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Submitted by : Elaine Edwards on 2011-04-05 14:08:41
I have just found out that "Absa Ins Brokers" charges us double the amount that Sanlam would charge us for our house ins. premiums.
That just doesn't sound kosher to me
Maybe Noseweek should investigate them

Editor's Note
And what are you still doing with them? Why don't you move to Sanlam if you truly believe the grass to be greener on that side? Bye bye and good luck
 
Submitted by : Samir Shasha of Harare on 2008-05-29 18:58:28
In American "commission based" industries - particularly Real Estate - the draw is indeed clawed back against commissions - but the draw is not enforceable as a loan. Hence this places a responsibility on the employer to properly select and train its agents and to terminate the services of those that don't make the grade.

It seems rather draconian and misleading to "help" someone build a business then destroy them financially if they fail - especially when the 65% then earned is not applied to the termination nor is the discounted value of future earnings from 100% of the commissions earned.

Finally, shame on you Magistrate Fourie. From what I have read here, surely even the least business-trained magistrate should be able to fathom who has come at the short-end of this transaction.
 
Submitted by : Craig Thom of CHEMPET on 2008-05-29 16:35:46
Seems that Absa know these people won't make their targets & in the end get the clients for free.
There seem to be similar goings on in the long term insurance industry, where an upfront "salary" is paid. This is clawed back, and the salesmen need to pay back any commissions earned where clients cancel their contracts within (I think) two years. Thats even if they are no longer employed by the insurance company.

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