Commission Agreement

A Commission Agreement allows you to set the terms and conditions regarding the payment structure of commission to an employee or contractor.

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Last updated October 24, 2025

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Suitable for Australia

Commission Agreement

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What is a commission agreement?

A commission agreement is a legal document that sets out how and when commission payments will be made to an employee or contractor, typically for sales or marketing roles.
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When should you use a commission agreement?

Use a commission agreement whenever you want to establish clear, written terms for commission-based payments with an employee or external contractor involved in sales or marketing activities.
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What should be in a commission agreement?

A commission agreement should include payment structure, commission rates, performance targets, payment timing, termination conditions, and dispute resolution procedures tailored to your business needs.
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Frequently asked questions

Who can this agreement be used for?

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What commission structures can I set?

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Does this document cover dispute resolution?

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Are there protections for late commission payments?

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Can either party terminate the agreement?

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What are the key limitations of this agreement?

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What steps should I take after completing the agreement?

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View Sample Commission Agreement

Commission Agreement
risk level indicator at Low level

The Legal Risk Score of a Commission Agreement Template is Low

Our legal team have marked this document as low risk considering:

  • The document sets a fixed interest rate on overdue payments, which could be financially burdensome if the rate is high compared to standard industry practices.
  • The salesperson can be engaged either as an employee or as a contractor.
  • Either party may terminate for convenience.

Meet Our Users

Articles about Commission Agreement

A Guide to Sales Commission Structures
By Daniel Fane|Feb 17, 2020

A Guide to Sales Commission Structures

A good commission structure can help a business incentivise better employee performance. Here's our overview of the most popular commission structures.

The Australian Competition and Consumer Commission (ACCC)
By Stephanie Makari|Apr 4, 2025

The Australian Competition and Consumer Commission (ACCC)

The Australian Competition and Consumer Commission (ACCC) has announced its compliance and enforcement priorities for 2025 to 2026.

Do I Need an ABN to Get Referral Commission?
By Paul Taylor|Dec 4, 2025

Do I Need an ABN to Get Referral Commission?

Whether you need an ABN to receive commission from referrals can depend on a broad number of factors. Read more what you need to know for finders fees here.

Qantas and China Eastern Airlines Team Up
By Dominic Woolrych|Aug 23, 2015

Qantas and China Eastern Airlines Team Up

Learn the implications of the QANTAS and China Eastern Airlines agreement and the conditions to limit the possibility of harming the public? Read now.

An Ultimate Guide to Enterprise Agreements in Australia
By Ilyas Omari|May 3, 2023

An Ultimate Guide to Enterprise Agreements in Australia

Read this guide to learn about how enterprise agreements work and how they can benefit both your business and your employees.

What Is a Common Fund Order (CFO)?
By Daniel Alkurdi|Jul 28, 2020

What Is a Common Fund Order (CFO)?

Read this article to find out what a Common Fund Order (CFO) is and how recent Court rulings have changed how they operate.

What are Affiliate Agreements?
By Daniel Fane|Feb 22, 2024

What are Affiliate Agreements?

Affiliate agreements offer a cost-effective opportunity for businesses to run online marketing campaigns. Here's what to consider when forming one.

How Does a Distribution Agreement Work?
By Vincent Appleton|Mar 15, 2019

How Does a Distribution Agreement Work?

Thinking about entering into a distribution agreement? Need help figuring out how it works? This article covers what you need to know.

What is Affiliate Marketing?
By Janette Nalbandian|Aug 8, 2019

What is Affiliate Marketing?

Affiliate marketing can be a great way to get your products brought to a larger audience and build business relationships. Read about it here.

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