The Employer Employee Sales Commission Agreement is essential for businesses in Singapore engaging sales professionals on a commission-based compensation structure. This document provides a comprehensive framework for the employment relationship, detailing commission calculations, payment schedules, and performance expectations while ensuring compliance with Singapore's Employment Act, CPF requirements, and tax regulations. It's particularly crucial for protecting both employer and employee interests in variable compensation arrangements and establishing clear metrics for success.
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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 used throughout the agreement including 'Commission', 'Sales', 'Territory'
4. Appointment: Terms of employment and role description
5. Commission Structure: Detailed explanation of commission calculations and rates
6. Payment Terms: Timing and method of commission payments, including CPF contributions
7. Obligations of Employee: Key responsibilities and performance requirements
8. Term and Termination: Duration of agreement and termination provisions
9. Confidentiality: Protection of company confidential information and trade secrets
10. Governing Law: Specification of Singapore law as governing law and jurisdiction
1. Territory Assignment: Geographic or client portfolio limitations, used when employee is assigned specific territory or client base
2. Expense Reimbursement: Terms for business expense claims and reimbursement procedures
3. Training Requirements: Mandatory training and development obligations for the role
4. Team Management: Provisions for managing other sales staff, for senior sales positions
5. Non-Compete: Restrictions on post-employment competition, subject to reasonableness requirements under Singapore law
1. Schedule 1 - Commission Rate Card: Detailed breakdown of commission rates, tiers and calculation methods
2. Schedule 2 - Sales Territory Map: Geographic boundaries or client list assignments
3. Schedule 3 - Performance Metrics: KPIs and target specifications for commission qualification
4. Schedule 4 - Expense Policy: Detailed guidelines for expense claims and reimbursement limits
5. Schedule 5 - Product Price List: Current pricing for products/services being sold
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