The Employer Employee Sales Commission Agreement is essential for businesses operating in England and Wales that compensate sales staff through commission-based structures. This document formalizes the commission arrangement, protecting both employer and employee interests while ensuring compliance with UK employment legislation. It typically includes detailed commission calculations, performance metrics, payment schedules, and territory assignments where applicable. The agreement is particularly crucial for roles where variable compensation forms a significant portion of total remuneration.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of employment and commission arrangement
3. Definitions: Key terms used throughout the agreement including commission, sales, targets, and territory
4. Commission Structure: Detailed explanation of commission calculations, rates, and qualifying sales
5. Payment Terms: Timing and method of commission payments, including frequency and payment mechanisms
6. Performance Targets: Required sales targets, metrics, and measurement periods
7. Clawback Provisions: Circumstances under which commission may be recovered or withheld
8. Term and Termination: Duration of agreement and circumstances for termination
9. Post-Termination Rights: Rights to commission after employment ends
10. Governing Law: Specification of English and Welsh law as governing law
1. Territory Allocation: Defines specific geographic or client territories assigned to the employee
2. Team Commission Structures: Provisions for commission sharing in team sales environments
3. Non-Circumvention: Prevents direct sales outside approved channels
4. Reporting Requirements: Specific sales reporting obligations and frequencies
5. Dispute Resolution: Specific procedures for resolving commission-related disputes
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates and tiers
2. Schedule 2 - Commission Calculation Examples: Practical examples showing how commission is calculated in various scenarios
3. Schedule 3 - Sales Territory Maps: Visual representation of allocated sales territories if applicable
4. Schedule 4 - Performance Metrics: Detailed description of KPIs and performance measurement criteria
5. Schedule 5 - Reporting Templates: Standard formats for sales and commission reporting
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