This Benefits And Commission Contract is designed for use in employment relationships where variable compensation forms a significant part of the total remuneration package, alongside a structured benefits program. The document is specifically tailored to comply with Hong Kong employment law and regulatory requirements, including the Employment Ordinance and Mandatory Provident Fund regulations. It is typically used when engaging sales professionals, business development executives, or other roles where performance-based pay is standard practice. The contract provides comprehensive coverage of commission calculations, payment terms, clawback provisions, and a full range of employee benefits, while ensuring protection for both employer and employee interests in the Hong Kong business context.
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1. Parties: Identification of the employer and employee, including 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 agreement, including commission-related terminology and benefits definitions
4. Appointment and Term: Details of the employment position, commencement date, and duration of the agreement
5. Commission Structure: Core commission calculation methodology, payment terms, and conditions for earning commission
6. Basic Salary and Benefits Package: Details of base salary (if any) and comprehensive benefits package
7. Performance Targets: Specified sales or performance targets that affect commission earnings
8. Payment Terms: Timeline and method of commission payments, including any deferral or clawback provisions
9. Benefits Details: Comprehensive outline of all benefits including healthcare, insurance, MPF contributions, and other perks
10. Obligations and Duties: Employee's responsibilities and performance expectations
11. Termination Provisions: Conditions for termination and impact on commission and benefits
12. Post-Termination Obligations: Non-compete, confidentiality, and other post-employment restrictions
13. Governing Law: Specification of Hong Kong law as governing law and jurisdiction
14. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and notices
1. Probationary Period: Include when the position has an initial probation period with different commission/benefits terms
2. International Travel: Include when role requires travel and specific benefits/allowances apply
3. Team Management: Include when employee will manage others and receive override commissions
4. Bonus Structure: Include when additional bonus schemes apply beyond standard commission
5. Stock Options: Include when equity or stock options are part of the compensation package
6. Expatriate Benefits: Include for international employees requiring additional benefits/allowances
7. Training Requirements: Include when specific training or certification requirements affect commission eligibility
1. Schedule 1 - Commission Rates: Detailed breakdown of commission percentages, tiers, and calculation methods
2. Schedule 2 - Benefits Summary: Comprehensive list of benefits with detailed terms and conditions
3. Schedule 3 - Performance Metrics: Specific KPIs and targets that affect commission earnings
4. Schedule 4 - Territory/Client List: Definition of sales territory or allocated client accounts
5. Schedule 5 - Bonus Calculations: Detailed methodology for calculating any additional bonuses
6. Appendix A - Commission Examples: Practical examples of commission calculations in various scenarios
7. Appendix B - Benefits Claims Procedures: Step-by-step procedures for claiming various benefits
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Real Estate
Insurance
Retail
Technology Sales
Telecommunications
Pharmaceutical Sales
Automotive
Recruitment
Luxury Goods
Media and Advertising
Professional Services
Relevant Teams
Sales
Business Development
Account Management
Commercial
Revenue
Client Relations
Channel Partners
Direct Sales
Retail Operations
Business Solutions
Agency Management
Broker Relations
Relevant Roles
Sales Executive
Business Development Manager
Account Manager
Real Estate Agent
Insurance Broker
Financial Advisor
Sales Director
Regional Sales Manager
Recruitment Consultant
Commission-based Consultant
Business Development Director
Channel Partner Manager
Senior Account Executive
Sales Representative
Commercial Manager
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