The Contract For Commission Based Employment is designed for use in England and Wales when establishing employment relationships where remuneration is significantly tied to sales performance or other measurable outcomes. This document is essential for businesses operating in sales-driven environments, providing clear guidelines on commission calculations, payment terms, and performance expectations. It ensures compliance with UK employment law while protecting both parties' interests and establishing transparent compensation structures. The contract addresses key aspects such as basic salary (if any), commission rates, payment schedules, and performance targets, while incorporating necessary employment protections and obligations.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Duration: Terms of employment, start date, and contract duration
5. Duties and Responsibilities: Detailed description of role and expectations
6. Commission Structure: Detailed explanation of commission calculation and payment terms
7. Basic Salary and Benefits: Any fixed salary component and additional benefits
8. Working Hours: Expected working hours and flexibility arrangements
9. Holiday Entitlement: Annual leave allowance and calculation of holiday pay
10. Termination Provisions: Notice periods and grounds for termination
1. Remote Working: Terms for remote work arrangements when permitted by the employer
2. Company Car: Terms of company vehicle provision and usage conditions
3. International Travel: Terms and conditions for international business travel requirements
4. Non-Compete Clause: Restrictions on post-employment competition for senior sales roles or sensitive client relationships
1. Schedule 1: Commission Calculation Examples: Detailed examples of how commission will be calculated in various scenarios
2. Schedule 2: Sales Targets: Specific sales targets and related commission thresholds
3. Schedule 3: Benefits Package: Detailed breakdown of additional benefits
4. Appendix A: Company Policies: Reference to relevant company policies
5. Appendix B: Territory/Client List: Definition of sales territory or allocated client base
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