The Employee Commission Agreement is essential for businesses in Singapore that compensate staff through commission-based structures. This document establishes clear terms for commission payments while ensuring compliance with Singapore's employment laws, CPF requirements, and tax regulations. It's particularly crucial for sales-oriented roles where variable compensation forms a significant portion of earnings. The agreement provides security for both employer and employee by clearly defining commission structures, payment terms, and performance criteria, while addressing specific requirements under Singapore's legal framework.
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Key Requirements PROMPT example:
Employee Commission Agreement
"Need an Employee Commission Agreement for our Singapore-based fintech company, covering a sales team of 10 people with tiered commission rates based on quarterly targets, starting from January 2025."
1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of employment relationship and purpose of commission agreement
3. Definitions: Key terms including 'Commission', 'Sales', 'Qualifying Revenue', etc.
4. Commission Structure: Detailed explanation of commission calculations, rates, and qualifying criteria
5. Payment Terms: Timing and method of commission payments, including any minimum thresholds
6. Term and Termination: Duration of agreement and circumstances for termination
7. Statutory Compliance: CPF, tax, and other regulatory compliance provisions
1. Clawback Provisions: Terms for recovering commission payments in specific circumstances when business model involves risk of customer returns or contract cancellations
2. Non-Competition: Restrictions on employee's competitive activities, used for sales roles with access to sensitive client information
3. Team Commission Structure: Rules for commission sharing in team sales, applicable when employee works as part of a sales team
1. Commission Rates Schedule: Detailed breakdown of commission rates and tiers
2. Sales Territory Definition: Geographic or client segment boundaries for commission eligibility
3. Commission Calculation Examples: Practical examples showing how commission is calculated in various scenarios
4. Products/Services Schedule: List of products/services eligible for commission
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