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Sales Commission Contract Template for Indonesia

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Key Requirements PROMPT example:

Sales Commission Contract

"I need a Sales Commission Contract for our Indonesia-based SaaS company that will be used for hiring senior sales representatives who will operate across Southeast Asia, with a tiered commission structure ranging from 5-15% based on sales volume and inclusion of quarterly performance bonuses."

Document background
The Sales Commission Contract serves as a crucial legal framework for businesses operating in Indonesia that engage sales representatives or agents on a commission basis. This document is essential when companies want to establish clear, legally compliant commission-based relationships with their sales force, whether they are employees or independent contractors. It addresses key aspects required under Indonesian law, including commission structures, performance metrics, territory rights, and payment terms, while ensuring compliance with local labor regulations, particularly Law No. 13 of 2003 on Manpower and relevant commercial laws. The contract is designed to protect both the company's interests and the rights of sales representatives, providing clarity on earnings potential, performance expectations, and operational procedures while maintaining alignment with Indonesian legal requirements for commission-based work arrangements.
Suggested Sections

1. Parties: Identification of the Company and the Sales Representative/Agent

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement including 'Commission', 'Sales', 'Territory', 'Products/Services'

4. Appointment and Scope: Formal appointment of sales representative and definition of their role

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

6. Commission Structure: Basic commission rates, calculation methods, and payment terms

7. Sales Representative's Obligations: Key responsibilities, performance targets, and reporting requirements

8. Company's Obligations: Support, training, and resources provided by the company

9. Payment Terms: Timeline and method of commission payments, including handling of refunds/cancellations

10. Confidentiality: Protection of company information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competing activities during and after the agreement

12. Intellectual Property: Usage rights of company trademarks, materials, and IP

13. Dispute Resolution: Process for handling disagreements under Indonesian law

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

Optional Sections

1. International Sales: Include when sales representative may operate in multiple countries

2. Team Management: Include when representative may build and manage their own sales team

3. Product Training: Include for complex products requiring specific training

4. Expense Reimbursement: Include if company will reimburse certain sales expenses

5. Insurance Requirements: Include if specific insurance coverage is required

6. Marketing Support: Include if representative will receive marketing materials or support

7. Performance Bonuses: Include if additional incentives beyond basic commission are offered

8. Customer Data Protection: Include if representative will handle sensitive customer data

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products/services

2. Schedule B - Territory Definition: Specific geographical or customer segment boundaries

3. Schedule C - Sales Targets: Quarterly/annual sales targets and any related bonus structures

4. Schedule D - Approved Marketing Materials: List of materials representative is authorized to use

5. Schedule E - Reporting Templates: Standard forms for sales reporting and commission calculations

6. Schedule F - Product List: Current products/services covered by the agreement

7. Appendix 1 - Code of Conduct: Company's sales practices and ethical guidelines

8. Appendix 2 - Commission Calculation Examples: Practical examples of commission calculations

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













































Clauses








































Relevant Industries

Retail

Real Estate

Financial Services

Technology

Manufacturing

Pharmaceutical

Consumer Goods

Insurance

Telecommunications

Professional Services

Automotive

Industrial Equipment

Software and SaaS

Construction Materials

Medical Devices

Relevant Teams

Sales

Legal

Finance

Human Resources

Operations

Commercial

Business Development

Compliance

Account Management

Revenue Operations

Relevant Roles

Sales Representative

Business Development Manager

Account Executive

Regional Sales Manager

Sales Director

Commission Agent

Territory Manager

Independent Sales Contractor

Sales Consultant

Channel Partner Manager

Chief Revenue Officer

VP of Sales

Sales Operations Manager

Commercial Director

Business Development Director

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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