The Commission Employment Contract is a specialized employment agreement designed for use in Switzerland when engaging employees whose compensation includes a commission-based component. This document is essential for businesses operating in sales-driven environments where employee compensation is directly linked to performance and revenue generation. The contract must comply with Swiss employment law, particularly the Swiss Code of Obligations (Articles 319-362) and relevant provisions concerning commission-based compensation. It addresses crucial aspects such as commission calculation methods, payment terms, minimum guaranteed income (if applicable), performance targets, and territory assignments. This type of contract is commonly used when hiring sales representatives, business development managers, real estate agents, and other professionals whose compensation is partially or fully based on commission structures.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the contract, particularly commission-related terminology
4. Position and Duties: Description of the employee's role, responsibilities, and reporting structure
5. Commencement and Duration: Start date and term of employment (fixed-term or indefinite)
6. Commission Structure: Detailed explanation of the commission calculation method, rates, and conditions
7. Base Salary and Payment Terms: Fixed salary component (if any) and payment arrangements for both salary and commission
8. Working Hours and Location: Standard working hours, workplace location, and flexibility arrangements
9. Holidays and Leave: Annual leave entitlement and public holiday provisions
10. Social Security and Insurance: Mandatory social security contributions and insurance arrangements
11. Confidentiality: Protection of company confidential information and trade secrets
12. Intellectual Property: Ownership and rights regarding work-created intellectual property
13. Non-Competition: Post-employment competitive restrictions in accordance with Swiss law
14. Termination: Notice periods and grounds for termination
15. Governing Law: Confirmation of Swiss law application and jurisdiction
1. Probationary Period: Terms of initial probationary period, if applicable
2. Expenses: Policy on business expense reimbursement, if offered
3. Company Car: Terms of company car provision, if applicable
4. Additional Benefits: Any additional benefits such as health insurance or pension contributions beyond statutory requirements
5. Home Office Arrangements: Terms for remote working, if permitted
6. Training and Development: Provisions for professional development and required training
7. Garden Leave: Terms for garden leave during notice period, if applicable
8. Sales Territory: Definition of exclusive sales territory, if applicable
9. Performance Targets: Specific performance metrics and consequences, if not in schedules
1. Commission Calculation Schedule: Detailed formulas and examples of commission calculations
2. Sales Targets and Quotas: Specific sales targets and minimum performance requirements
3. Product Price List: Current prices and commission rates for different products/services
4. Expense Policy: Detailed policy on allowable expenses and reimbursement procedures
5. Code of Conduct: Company's code of conduct and sales practices
6. Benefits Package Details: Comprehensive description of all benefits and eligibility criteria
7. Reporting Requirements: Templates and procedures for sales and commission reporting
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