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Commission Employment Contract Template for Denmark

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Key Requirements PROMPT example:

Commission Employment Contract

I need a Commission Employment Contract for a senior sales representative in the software industry, with a 70-30 commission-to-base-salary split, covering the Nordic region, starting March 1, 2025, with a 6-month probationary period and standard non-compete provisions.

What is a Commission Employment Contract?

The Commission Employment Contract is designed for use in situations where an employee's compensation is partially or fully based on commission earnings. This document type is essential for Danish employers hiring sales professionals and other revenue-generating roles where performance-based compensation is appropriate. The contract complies with Danish employment law, including the Danish Salaried Employees Act (Funktion脙茠脗娄rloven) and Commission Act (Kommissionsloven), while providing a clear framework for commission calculations, payment terms, and performance expectations. It includes necessary provisions for employment protection, working hours, holiday entitlements, and notice periods, making it suitable for both full-time and part-time commission-based positions in Denmark.

What sections should be included in a Commission Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including specific commission-related terminology

4. Position and Duties: Job title, role description, responsibilities, and reporting lines

5. Commencement and Duration: Start date and type of employment (fixed-term or permanent)

6. Commission Structure: Detailed explanation of commission calculation, base salary (if any), and payment terms

7. Working Hours: Standard working hours, flexibility requirements, and overtime provisions

8. Place of Work: Primary workplace location and any mobility requirements

9. Holiday Entitlement: Annual leave entitlement and holiday pay calculations as per Danish Holiday Act

10. Sickness and Absence: Procedures for reporting absence and sick pay entitlements

11. Confidentiality: Obligations regarding company and client confidential information

12. Data Protection: Handling of personal data in compliance with GDPR and Danish law

13. Notice Period: Notice requirements for termination by either party

14. Post-Termination Restrictions: Non-compete and non-solicitation provisions if applicable

15. Governing Law: Specification of Danish law as governing law and jurisdiction

What sections are optional to include in a Commission Employment Contract?

1. Probationary Period: Include when a trial period is desired at the start of employment

2. Company Car/Equipment: Include when providing company vehicles or significant equipment

3. Pension Scheme: Include when offering pension benefits beyond mandatory requirements

4. Insurance Benefits: Include when providing additional insurance coverage

5. Training and Development: Include when specific training requirements or development programs are part of the role

6. International Travel: Include when role requires significant international travel

7. Bonus Scheme: Include when additional bonus structures exist beyond commission

8. Intellectual Property: Include when employee may create IP during employment

9. Garden Leave: Include for senior roles where garden leave might be required

What schedules should be included in a Commission Employment Contract?

1. Commission Calculation Methods: Detailed formulas and examples of commission calculations

2. Sales Territories: Definition of geographical or client territories if applicable

3. Target Setting: Specific sales targets and their measurement periods

4. Benefits Package: Detailed description of all benefits and eligibility criteria

5. Company Policies: Reference to relevant company policies affecting the role

6. Expense Policy: Guidelines for business expense claims and reimbursement

7. Product List: List of products/services and associated commission rates if applicable

8. KPIs: Key Performance Indicators and measurement criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































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Relevant Industries

Retail

Real Estate

Financial Services

Insurance

Telecommunications

Software and Technology

Automotive

Manufacturing

Pharmaceutical

Professional Services

Media and Advertising

Travel and Tourism

Relevant Teams

Sales

Business Development

Commercial

Account Management

Revenue

Business Solutions

Channel Partners

Direct Sales

Inside Sales

Field Sales

Retail Operations

Financial Advisory

Customer Success

Marketing

Relevant Roles

Sales Representative

Business Development Manager

Account Executive

Real Estate Agent

Insurance Agent

Sales Manager

Commercial Director

Financial Advisor

Sales Consultant

Business Development Executive

Regional Sales Manager

Territory Manager

Commission-based Consultant

Investment Advisor

Recruitment Consultant

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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