A Commission Agreement allows you to set the terms and conditions regarding the payment structure of commission to an employee or contractor. This document can be used for either an existing employee of your business or an external contractor. Clearly defining the terms of commission payment will improve transparency and help you avoid potentially costly disputes in the future.

Typically, a business might offer employees a percentage of their sales as commission. However, we understand that each business will have its own unique requirements regarding commission payment structure. This document allows you to choose from two common payment structures; straight commission (a flat rate payment per event, such as a sale) and performance-based commission (commission paid based on whether performance targets have been met). Alternatively, you can also set your own commission terms, based on your business’ needs.

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:

• What is a commission agreement?

• Guide to sales commission structures