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A Commission Agreement sets out how and when someone gets paid for successfully bringing in business or closing deals. In Switzerland, these contracts are especially common in sales, real estate, and financial services, where professionals earn a percentage of the value they generate through their work.

Under Swiss contract law (Code of Obligations), these agreements must clearly specify the commission rate, payment terms, and any performance conditions. Many Swiss companies use them to motivate their sales teams and external partners, while protecting both parties through clear rules about when commissions are earned and how disputes get resolved.

Use a Commission Agreement when bringing sales representatives, brokers, or agents into your business who will earn money based on their performance. This agreement becomes essential the moment you start working with anyone who gets paid a percentage of deals or transactions they generate.

In Switzerland, having this agreement in place before the first sale protects both parties under the Code of Obligations. It prevents disputes by clearly defining commission rates, payment timing, and performance targets. For regulated industries like financial services or real estate, it helps ensure compliance with Swiss compensation disclosure requirements and fair business practices.

• Commission Employment Contract: For full-time employees with base salary plus commission structure, following Swiss employment law requirements
• Sales Representative Contract: Designed for independent sales agents who work exclusively on commission
• Middleman Commission Agreement: For intermediaries who connect buyers and sellers, common in real estate and business deals
• Salesperson Employment Contract: Specifically for retail sales staff, combining fixed wages with performance bonuses
• Brokers Fee Agreement: Used in financial services and property transactions, with detailed success fee structures

• Sales Organizations: Companies that hire sales teams and need clear commission structures, from retail chains to tech firms
• Sales Representatives: Independent contractors or employees who earn commissions by selling products or services
• Real Estate Agencies: Firms structuring commission plans for their agents under Swiss property regulations
• Legal Advisors: Lawyers and compliance officers who draft and review agreements to ensure alignment with Swiss labor laws
• Financial Services Firms: Banks and insurance companies using commission structures for their brokers and advisors
• HR Departments: Teams responsible for implementing and managing commission-based compensation systems

• Party Details: Gather full legal names, addresses, and registration numbers of all involved parties
• Commission Structure: Define exact commission rates, calculation methods, and payment thresholds
• Performance Metrics: Specify clear sales targets, quotas, or other measurable goals that trigger commission
• Payment Terms: Decide on payment frequency, timing, and any conditions that must be met
• Territory Rights: Map out geographical areas or client segments covered by the agreement
• Compliance Check: Review Swiss labor law requirements, especially for employee-based commission structures
• Documentation: Set up systems for tracking sales, commissions, and performance reporting

• Party Identification: Full legal names, addresses, and business registration details of all parties
• Commission Structure: Clear calculation methods, rates, and conditions for earning commission
• Payment Terms: Specific timing, method, and currency of commission payments
• Performance Criteria: Measurable targets and standards that trigger commission payments
• Duration and Termination: Contract length, renewal options, and termination conditions
• Confidentiality: Protection of business secrets and client information under Swiss law
• Dispute Resolution: Swiss jurisdiction clause and preferred method of conflict resolution
• Compliance Statement: Reference to relevant Swiss labor and contract law provisions

A Commission Agreement differs significantly from an Agency Agreement in several key aspects, though both deal with business relationships. While Commission Agreements focus specifically on payment structures for sales performance, Agency Agreements cover a broader scope of representation and authority.

• Scope of Authority: Agency Agreements grant legal power to act on behalf of another party, while Commission Agreements only outline payment terms for sales achievements
• Legal Obligations: Agency relationships create fiduciary duties under Swiss law, whereas Commission Agreements primarily establish performance-based compensation terms
• Duration: Agency Agreements typically involve ongoing representation, while Commission Agreements can be project-specific or time-limited
• Risk and Liability: Agents can legally bind their principals, creating higher liability risks than commission-based relationships
• Regulatory Requirements: Agency relationships face stricter regulatory oversight under Swiss commercial law compared to commission-based arrangements