Commission Agreement Template
A Commission Agreement is a legal document signed by an employer and an employee regarding work paid on commission. This contract outlines the details of the working relationship between the employer and employee, defines the expected employment, and establishes salary and commission percentage. Quite often an employee's pay is based in part or in whole on commission, so before their work may begin, an agreement must be negotiated and signed by the involved parties.
- Sales Commission Agreement.
You may download a Commission Agreement template below or draft a more personalized document with the help of our online form builder .
ADVERTISEMENT
How Does a Commission Agreement Protect a Salesperson?
In certain cases, an employment contract does not determine commissions. If you are being hired as a salesperson and want your rights and obligations documented in the right way, thoroughly read the Sales Commission Agreement before signing it and starting your work. A properly drafted commission agreement must specify how the commission is computed and the basis of the commissions. Sometimes, an agreement states that the commission is the only compensation the salesperson will receive outside of bonuses and other incentives, making the agreement even more significant for the employee. Additionally, this contract may indicate when the salesperson receives compensation for their work - for instance when the product is shipped to the customer. This agreement will also list the circumstances when commissions are not paid to the salesperson.
How to Write a Commission Agreement?
To create a simple Commission Agreement, negotiate and add the following provisions to the contract:
- Names of the parties and the date of signing the document.
- Responsibilities of the employee. List all the job duties to be performed and specify the location, or sales territory. The employee must adhere to the company guidelines and agree to be subject to the supervision, direction, and advice of supervisory personnel. The job duties and other services must be performed industriously and faithfully.
- Compensation of the employee. State the salary details, dates of payment, and the chosen method of payment. This clause is optional - many contracts only contain a commission provision.
- Commission earnings and payment structure. In addition to the wage under the preceding section, the employee will also receive commission payments. Clearly define the "Trigger Event" - the event that gives the employee the right to be paid. Determine the amount of commission and the manner these payments are calculated. Be sure to mention all relevant details such as variable commission percentages, quotas, and payout schedules.
- Confidentiality. The employee promises not to disclose trade secrets and other private information learned during the period of employment to any third party. This clause lets the employer protect their business.
- Termination. Either party can cancel the agreement upon written notice.
- Signatures of the parties. Once the papers are signed, this contract becomes legally binding. However, this document is highly flexible, can be used in different situations, and the parties are free to negotiate another contract to adjust to changing circumstances.
Related Contracts and Agreements:
- Breach of Contract Notice;
- Addendum to a Contract;
- Retainer Agreement;
- Settlement Agreement;
- Referral Agreement.
Download Commission Agreement Template
4.6 of 5 ( 14 votes )
1
2
3
Prev 1 2 3 Next
ADVERTISEMENT
Linked Topics
Commission Agreement Sales Agreement Template Payment Terms Service Contract Template Business
Related Documents
- Addendum to a Contract
- Independent Contractor Agreement Template
- Sales Contract Template
- Settlement Agreement Template
- Referral Agreement Template
- Retainer Agreement Template
- Consulting Agreement Template
- Breach of Contract Notice Template
- Agency Agreement Template
- Vending Contract Template
- Marketing Agreement Template
- Speaker Contract Template
- Sales Commission Calculator Template
- Commission Invoice Template
- Sales Call Log Template
- Sales Proposal Template
- Monthly Sales Report Template
- Weekly Sales Report Template
- Daily Sales Report Template
- Sales Quote Template
- Convert Word to PDF
- Convert Excel to PDF
- Convert PNG to PDF
- Convert GIF to PDF
- Convert TIFF to PDF
- Convert PowerPoint to PDF
- Convert JPG to PDF
- Convert PDF to JPG
- Convert PDF to PNG
- Convert PDF to GIF
- Convert PDF to TIFF
- Split PDF
- Merge PDF
- Sign PDF
- Compress PDF
- Rearrange PDF Pages
- Make PDF Searchable
- About
- Help
- DMCA
- Privacy Policy
- Terms Of Service
- Contact Us
- All Topics
Legal Disclaimer: The information provided on TemplateRoller.com is for general and educational purposes only and is not a substitute for professional advice. All information is provided in good faith, however, we make no representation or warranty of any kind regarding its accuracy, validity, reliability, or completeness. Consult with the appropriate professionals before taking any legal action. TemplateRoller.com will not be liable for loss or damage of any kind incurred as a result of using the information provided on the site.
TemplateRoller. All rights reserved. 2024 ©
Notice
This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. If you want to know more or withdraw your consent to all or some of the cookies, please refer to the cookie policy.