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Commission Draw Agreement Template for Indonesia

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Key Requirements PROMPT example:

Commission Draw Agreement

"I need a Commission Draw Agreement for our Jakarta-based pharmaceutical sales team, with a monthly draw of IDR 8,000,000 and graduated commission rates starting at 3% for regular products and 5% for new product launches planned for March 2025."

Document background
The Commission Draw Agreement serves as a critical document in establishing a structured compensation system that provides sales professionals with income stability while maintaining performance incentives. This agreement type is particularly valuable when onboarding new sales staff or in industries with longer sales cycles, where immediate commission earnings might be delayed. Under Indonesian law, particularly considering the Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages, this agreement must carefully balance the draw and commission structure while ensuring compliance with minimum wage requirements and employee protection provisions. The document typically includes detailed commission calculations, draw recovery mechanisms, payment schedules, and performance expectations, all while adhering to local labor regulations.
Suggested Sections

1. Parties: Identification of the employer and employee entering into the agreement

2. Background: Context of the agreement and employment relationship

3. Definitions: Key terms including 'Commission', 'Draw', 'Sales', 'Gross Revenue' and other relevant definitions

4. Commission Structure: Detailed explanation of commission rates, tiers, and calculation methods

5. Draw Arrangement: Terms of the draw payment, including amount and frequency

6. Draw Recovery: Process for recovering draw payments from earned commissions

7. Payment Terms: Timeline and method of commission payments and draw reconciliation

8. Reporting and Accounting: Requirements for sales reporting and commission calculations

9. Employment Status: Confirmation of employment relationship and integration with existing employment terms

10. Term and Termination: Duration of the agreement and conditions for termination

11. Post-Termination Obligations: Handling of outstanding draws and commissions after termination

12. Governing Law: Specification of Indonesian law as governing law

Optional Sections

1. Non-Competition: Restrictions on competitive activities, if applicable under Indonesian law

2. Territory Assignment: If the commission structure is territory-based

3. Performance Targets: If specific sales targets or quotas are tied to the commission structure

4. Bonus Structure: Additional incentive programs beyond basic commission

5. Training Requirements: If specific training is required to maintain commission eligibility

6. Dispute Resolution: Specific procedures for resolving commission-related disputes

7. Currency and Exchange Rates: For international sales or multi-currency transactions

Suggested Schedules

1. Commission Rate Schedule: Detailed breakdown of commission rates and tiers

2. Draw Calculation Example: Sample calculations showing draw recovery and commission payments

3. Sales Territory Map: If territory-based, defining the assigned sales area

4. Product List: List of products/services eligible for commission

5. Commission Report Template: Standard format for monthly commission reports

6. Existing Employment Agreement: Reference to or incorporation of existing employment terms

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

Real Estate

Insurance

Financial Services

Technology Sales

Manufacturing

Pharmaceutical

Automotive

Telecommunications

Industrial Equipment

Professional Services

Retail (High-value items)

Construction Materials

Medical Equipment

Business Services

Relevant Teams

Sales

Business Development

Account Management

Human Resources

Finance

Legal

Sales Operations

Compensation & Benefits

Revenue Operations

Contract Administration

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Territory Manager

Regional Sales Director

Commission Administrator

Sales Operations Manager

Account Manager

Client Relations Manager

Senior Sales Executive

Product Specialist

Solutions Consultant

Sales Engineer

Channel Sales Manager

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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