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Commission Based Employment Contract Template for Malaysia

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Key Requirements PROMPT example:

Commission Based Employment Contract

"I need a Commission Based Employment Contract for a senior sales representative in the pharmaceutical industry, with a 70-30 commission-to-base-salary split and international territory coverage, starting March 1, 2025."

Document background
This Commission Based Employment Contract is essential for businesses operating in Malaysia that employ sales professionals or other personnel compensated through commission structures. The document is designed to comply with Malaysian employment law while protecting both employer and employee interests in commission-based working arrangements. It establishes clear terms for commission calculations, payment schedules, and performance expectations, while ensuring compliance with statutory requirements such as the Employment Act 1955, EPF contributions, and social security obligations. This contract type is particularly relevant for sales-driven industries and roles where performance-based compensation forms a significant portion of the employee's earnings.
Suggested Sections

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including specific commission-related terminology

4. Appointment: Terms of employment, position title, and reporting structure

5. Duration: Commencement date and term of employment (fixed-term or permanent)

6. Duties and Responsibilities: Detailed description of the employee's role and expectations

7. Commission Structure: Basic framework of how commissions are calculated and earned

8. Payment Terms: Timing and method of commission payments, including any base salary

9. Performance Targets: Minimum performance requirements and sales targets

10. Working Hours: Expected working hours and flexibility requirements

11. Leave Entitlements: Annual, medical, and other types of leave as per Malaysian law

12. Termination: Conditions and procedures for ending the employment relationship

13. Confidentiality: Protection of company information and trade secrets

14. Governing Law: Specification of Malaysian law as the governing law

Optional Sections

1. Non-Compete: Restrictions on working for competitors after employment ends - use when protecting client relationships is crucial

2. Benefits: Additional benefits beyond statutory requirements - include when offering extra incentives

3. Training: Professional development and training provisions - use when specific training is required

4. Expense Reimbursement: Terms for business expense claims - include for roles with significant travel/expenses

5. Remote Work: Provisions for working from home or remote locations - use when flexible working arrangements are offered

6. International Travel: Terms for international business travel - include for roles requiring overseas work

7. Team Management: Additional responsibilities for team leadership - use for senior sales positions

Suggested Schedules

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

2. Performance Metrics: Specific KPIs and measurement criteria for performance evaluation

3. Territory Assignment: Definition of geographical or client territory allocation

4. Product List: List of products/services the employee is authorized to sell

5. Bonus Structure: Additional incentive schemes and bonus calculations

6. Benefits Schedule: Detailed description of additional benefits and eligibility criteria

7. Sales Process Guidelines: Standard operating procedures for sales activities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Retail

Telecommunications

Automotive

Technology Sales

Pharmaceutical Sales

Marketing and Advertising

Travel and Tourism

Manufacturing

Professional Services

Relevant Teams

Sales

Business Development

Account Management

Channel Sales

Direct Sales

Inside Sales

Field Sales

Retail Operations

Commercial

Marketing

Customer Success

Revenue

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Agent

Sales Executive

Account Executive

Sales Manager

Commission-Based Consultant

Sales Director

Business Development Executive

Channel Sales Manager

Territory Sales Manager

Recruitment Consultant

Marketing Executive

Property Consultant

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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