The Commission Based Job Offer Letter is a crucial document in Singapore's employment landscape, particularly for roles where compensation is tied to performance or sales outcomes. This document is designed to comply with Singapore's Employment Act and related legislation while providing clear terms of employment. It should be used when hiring employees whose compensation will be primarily or partially based on commission earnings. The letter typically includes detailed commission structures, performance expectations, payment terms, and other essential employment conditions. A well-drafted Commission Based Job Offer Letter helps prevent future disputes by clearly establishing the employment relationship and compensation framework.
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1. Company Information: Official company name, registration number, and registered address
2. Employee Information: Full name, NRIC/passport number, and contact details of the employee
3. Position and Role: Job title, role description, reporting structure, and key responsibilities
4. Commission Structure: Detailed explanation of commission rates, calculation methodology, and payment terms
5. Performance Metrics: Specific targets, KPIs, and performance expectations that commission payments will be based on
6. Payment Terms: Commission payment frequency, calculation periods, and payment methods
7. Employment Terms: Start date, working hours (if applicable), and basic employment conditions
1. Base Salary Component: Details of any fixed salary component, if the role includes a hybrid compensation structure
2. Benefits Package: Additional benefits such as medical insurance, leave entitlements, and other perks
3. Probation Terms: Duration and conditions of probation period, if applicable
4. Non-Compete Clause: Restrictions on working with competitors during and after employment
5. Confidentiality Terms: Provisions regarding handling of confidential information and trade secrets
1. Schedule A - Commission Rate Card: Detailed breakdown of commission rates for different products/services/targets
2. Schedule B - Performance Targets: Specific metrics, targets, and KPIs that need to be achieved for commission eligibility
3. Schedule C - Territory/Account Assignment: Defined sales territory or customer accounts allocation, if applicable
4. Schedule D - Benefits Schedule: Detailed breakdown of additional benefits and eligibility criteria
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