The Employer Employee Sales Commission Agreement is essential for businesses operating in Ireland that compensate their sales staff through commission-based structures. This document is typically used when hiring sales professionals where a significant portion of their compensation is tied to sales performance. It establishes clear terms for the commission structure, calculation methods, payment schedules, and performance expectations while ensuring compliance with Irish employment law. The agreement provides legal protection for both parties by clearly defining the employment relationship, commission entitlements, sales territories, and reporting requirements. It's particularly important for industries where commission-based sales are common and helps prevent future disputes by clearly documenting all aspects of the commission-based employment arrangement.
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Key Requirements PROMPT example:
Employer Employee Sales Commission Agreement
"I need an Employer Employee Sales Commission Agreement for a software company in Ireland, hiring a senior sales representative who will manage European territory sales with a tiered commission structure starting March 2025, including both individual and team-based commission components."
1. Parties: Identifies the employer and employee with full legal names and addresses
2. Background: Outlines the context of the agreement and the intent to establish a commission-based employment relationship
3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Sales', 'Targets', 'Territory' etc.
4. Appointment and Term: Details of the employment position, commencement date, and duration of the agreement
5. Duties and Responsibilities: Outlines the employee's sales responsibilities, reporting requirements, and performance expectations
6. Commission Structure: Details the basic commission calculation method, rates, and qualifying criteria
7. Payment Terms: Specifies when and how commission payments will be made, including any holdback periods
8. Targets and Performance Metrics: Establishes sales targets and how performance will be measured
9. Territory and Customer Assignment: Defines the geographic area or customer base the employee is responsible for
10. Record Keeping and Reporting: Outlines requirements for sales documentation and reporting procedures
11. Non-Compete and Confidentiality: Protects the employer's business interests and confidential information
12. Termination: Conditions for ending the agreement and impact on commission payments
13. Governing Law: Specifies Irish law as governing law and relevant jurisdiction
14. General Provisions: Standard clauses including entire agreement, amendments, and severability
1. Team Commission Structure: Used when employee manages a sales team or when team-based commissions apply
2. International Sales: Include when employee will be selling in multiple jurisdictions
3. Product-Specific Terms: Include when different commission rates apply to different products/services
4. Draw Against Commission: Include if offering guaranteed minimum drawings against future commission
5. Bonus Structure: Include if additional bonus schemes exist alongside commission
6. Training and Support: Include when specific training requirements or support structures need to be documented
7. Expense Policy: Include when employee is entitled to expense reimbursement
8. Remote Working Provisions: Include when employee will work remotely or hybrid
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule 2 - Sales Targets: Specific sales targets and quotas for the current period
3. Schedule 3 - Territory Map: Detailed description or map of assigned sales territory
4. Schedule 4 - Reporting Templates: Standard forms and templates for sales reporting
5. Schedule 5 - Product List: List of products/services and associated commission rates
6. Appendix A - Sales Policies: Company's sales policies and procedures
7. Appendix B - Commission Examples: Sample calculations showing how commission is calculated in various scenarios
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
Real Estate
Insurance
Telecommunications
Pharmaceutical
Manufacturing
Retail
Professional Services
Software
Automotive
Medical Devices
Consumer Goods
Media and Advertising
Relevant Teams
Sales
Human Resources
Legal
Finance
Operations
Compensation & Benefits
Compliance
Business Development
Commercial
Relevant Roles
Sales Representative
Account Executive
Business Development Manager
Sales Manager
Regional Sales Director
Territory Manager
Inside Sales Representative
Sales Consultant
Commercial Director
Sales Engineer
Enterprise Account Manager
Senior Sales Executive
VP of Sales
Commission Administrator
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