Commission Agreement
A Commission Agreement allows you to set the terms and conditions regarding the payment structure of commission to an employee or contractor.
Last updated October 24, 2025
Suitable for Australia
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Frequently asked questions
Use a Commission Agreement if:
- You want to establish commission-based work with either one of your own employees or an external third-party contractor.
- You want to clearly define your own custom commission payment structure, including but not limited to commission rates, target numbers and earnings limits.
- What does a Commission Agreement provide?
- The ability for you to clearly set out the terms and conditions of commission payment, customised to your business needs.
- The ability to customise your commission payment structure to either your own employees or third-party contractors.
- Any applicable durations, deadlines or end events.
- Applicable interest payments on late commission payments.
- Procedures regarding termination and dispute resolution.
- Options for indemnity and non-exclusivity clauses.
Further Information:
View Sample Commission Agreement
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.
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