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Commission Based Employment Contract

Commission Based Employment Contract Template for Switzerland

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Key Requirements PROMPT example:

Commission Based Employment Contract

"I need a Commission Based Employment Contract for a luxury retail sales position in Geneva, with a 2% base commission rate on all sales and additional performance bonuses for exceeding quarterly targets, starting March 1, 2025."

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Document background
This Commission Based Employment Contract is essential for Swiss employers hiring employees where a significant portion of compensation is based on commission. The document is structured to comply with Swiss employment law requirements while providing a clear framework for commission-based compensation. It should be used when engaging sales professionals, brokers, agents, or other roles where performance-based pay is appropriate. The contract includes comprehensive provisions for base salary (if applicable), commission calculations, payment terms, clawback provisions, and performance metrics. It ensures compliance with Swiss labor laws, social security requirements, and mandatory employment provisions while protecting both employer and employee interests in a commission-based relationship. The document is particularly relevant for sales-oriented positions across various industries where variable compensation forms a key part of the employment package.
Suggested Sections

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract, particularly focusing on commission-related terminology

4. Position and Duties: Job title, role description, and key responsibilities of the employee

5. Term and Notice Period: Duration of employment (if fixed-term) and notice periods for termination as per Swiss law

6. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

7. Base Salary: Fixed component of compensation, if any, and payment intervals

8. Commission Structure: Detailed explanation of commission calculation methodology, qualifying sales/transactions, and earning criteria

9. Commission Payment Terms: Timing of commission payments, calculation periods, and payment processing details

10. Social Security and Insurance: Mandatory Swiss social security contributions and insurance arrangements

11. Holidays and Leave: Annual leave entitlement, public holidays, and other leave provisions

12. Expenses: Policy on business expenses reimbursement and claiming procedures

13. Confidentiality: Obligations regarding company and client confidential information

14. Data Protection: Handling of personal data in compliance with Swiss data protection laws

15. Governing Law: Confirmation of Swiss law governance and jurisdiction

Optional Sections

1. Probationary Period: Include when a probationary period is desired, specifying duration and terms

2. Non-Competition: Add when restricting post-employment competition is necessary, ensuring compliance with Swiss law limitations

3. Non-Solicitation: Include when protecting client relationships and employee relationships is crucial

4. Company Property: Add when employee is provided with significant company equipment or resources

5. Training and Development: Include when specific training requirements or professional development programs are offered

6. Performance Reviews: Add when formal performance review processes affect commission structures

7. Bonus Schemes: Include when additional bonus programs exist alongside commission structure

8. Remote Working: Add when remote work arrangements are part of the employment terms

9. International Travel: Include when role requires international travel or cross-border activities

Suggested Schedules

1. Commission Calculation Examples: Detailed examples showing how different commission scenarios are calculated

2. Sales Territory Definition: Specification of geographical or client segment boundaries for commission eligibility

3. Product/Service Commission Rates: Detailed breakdown of commission rates for different products or services

4. Performance Targets: Specific sales or performance targets linked to commission rates

5. Expense Policy: Detailed policy on claimable expenses and reimbursement procedures

6. Benefits Summary: Overview of additional benefits and insurance coverage

7. Company Policies: Reference to relevant company policies affecting the employment relationship

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions









































Clauses




































Relevant Industries

Retail

Real Estate

Financial Services

Insurance

Technology Sales

Pharmaceutical Sales

Automotive

Telecommunications

Manufacturing

Professional Services

Advertising and Media

Consumer Goods

Luxury Goods

Industrial Equipment

Software and SaaS

Relevant Teams

Sales

Business Development

Human Resources

Legal

Finance

Compensation & Benefits

Recruitment

Commercial

Account Management

Revenue Operations

Payroll

Compliance

Relevant Roles

Sales Representative

Business Development Manager

Account Executive

Real Estate Agent

Insurance Broker

Sales Manager

Commercial Agent

Territory Sales Manager

Recruitment Consultant

Financial Advisor

Investment Broker

Retail Sales Associate

Sales Director

Commission-based Consultant

Business Broker

Advertising Sales Representative

Export Sales Manager

Channel Sales Manager

Enterprise Sales Executive

Commission-based Trainer

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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