Ƶ

Sales Commission Agreement for the United Kingdom

Sales Commission Agreement Template for United States

A Sales Commission Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which a sales representative will be compensated for successful sales. The agreement outlines commission rates, payment terms, sales territories, and performance expectations while ensuring compliance with federal and state labor laws, including FLSA requirements and state-specific commission regulations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Sales Commission Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Sales Commission Agreement?

The Sales Commission Agreement serves as a critical document for businesses operating in the United States that rely on commission-based sales structures. This agreement establishes clear parameters for sales compensation, helping prevent disputes and ensuring compliance with federal and state regulations. It's particularly important in industries where significant portions of compensation are commission-based, and it helps protect both the employer's interests and the sales representative's rights to earned commissions. The document typically includes detailed commission structures, payment schedules, performance metrics, and territory definitions, while addressing both federal requirements and state-specific commission payment laws.

What sections should be included in a Sales Commission Agreement?

1. Parties: Identifies and defines the parties to the agreement - typically the company and the sales representative

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the sales representative's role and territory/market

5. Commission Structure: Details the commission rates, calculation methods, and qualifying sales

6. Payment Terms: Specifies when and how commissions will be paid

7. Obligations of the Parties: Lists responsibilities of both the company and sales representative

8. Term and Termination: Specifies duration and conditions for ending the agreement

9. Governing Law: Specifies which jurisdiction's laws govern the agreement

What sections are optional to include in a Sales Commission Agreement?

1. Non-Compete: Restricts representative from working with competitors (use when protecting market share or sensitive information)

2. Confidentiality: Protects company's confidential information (use when representative will have access to sensitive information)

3. Performance Targets: Sets minimum sales targets or quotas (use when specific performance levels are required)

4. Training Requirements: Specifies required training or certifications (use when specific product knowledge or skills are needed)

5. Expense Reimbursement: Details which expenses are reimbursable (use when representative incurs business expenses)

What schedules should be included in a Sales Commission Agreement?

1. Commission Rate Schedule: Detailed breakdown of commission rates and tiers

2. Territory Map: Geographic or market definition of sales territory

3. Product List: List of products/services covered by the agreement

4. Sales Targets: Detailed performance metrics and quotas

5. Expense Policy: Detailed policy on reimbursable expenses and procedures

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses






























Industries

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments

Federal Insurance Contributions Act (FICA): Federal law requiring the collection of Social Security and Medicare taxes from both employers and employees, which must be considered when structuring commission payments

Federal Unemployment Tax Act (FUTA): Federal law requiring employers to pay unemployment taxes that fund unemployment compensation for workers who lose their jobs

Internal Revenue Code: Federal tax regulations governing the taxation of commission payments, including withholding requirements and tax reporting obligations

State Labor Laws: Various state-specific regulations governing employment relationships, wage payments, and commission structures that vary by jurisdiction

State Unemployment Insurance Requirements: State-specific regulations requiring employers to contribute to state unemployment insurance funds based on employee wages and commissions

Independent Contractor Classification: IRS guidelines and state-specific tests for determining whether a commissioned salesperson should be classified as an employee or independent contractor

Commission Payment Timing Laws: State-specific requirements regarding the timing and frequency of commission payments, including rules for post-termination commissions

Statute of Frauds: Legal requirement that certain contracts, including those that cannot be performed within one year, must be in writing to be enforceable

Uniform Commercial Code: Standardized set of business laws regulating commercial transactions, which may apply to commission agreements related to sale of goods

Equal Pay Act: Federal law requiring equal pay for equal work, which must be considered when structuring commission plans to avoid discriminatory practices

Title VII of the Civil Rights Act: Federal law prohibiting employment discrimination based on race, color, religion, sex, and national origin, applicable to commission structure and implementation

Uniform Trade Secrets Act: Law protecting business trade secrets, relevant for including confidentiality provisions in commission agreements

State Non-Compete Laws: State-specific regulations governing the enforceability of non-compete clauses that may be included in commission agreements

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

Find the exact document you need

Tooling Agreement

An England & Wales agreement outlining rights and duties for industrial tooling creation, use, and maintenance.

Download

Residential Tenancy Agreement Standard Form Of Lease

An England & Wales lease agreement establishing an Assured Shorthold Tenancy under the Housing Act 1988.

Download

Representation Agreement

An England & Wales legal document authorizing a representative to conduct specified business activities on a principal's behalf.

Download

Provisional Agreement

An England & Wales legal document establishing interim terms during ongoing negotiations for complex transactions.

Download

Preliminary Agreement

An England & Wales legal document outlining preliminary terms for significant transactions or relationships before detailed negotiations.

Download

Notary Rent Agreement

An England & Wales rental contract authenticated by a Notary Public for enhanced legal certainty and compliance.

Download

Model Tenancy Agreement

An England & Wales legal template for residential lettings, detailing landlord-tenant obligations and compliance requirements.

Download

Lease With Option To Buy

An England & Wales lease agreement offering tenants a future property purchase option with specified terms.

Download

Lease And Licence Agreement

An England & Wales legal document granting property occupation and usage rights through lease and licence provisions.

Download

Land Agreement Between Two Parties

An England & Wales legal document transferring land interests and establishing rights between two parties.

Download

Employer Tuition Reimbursement Agreement

An England & Wales document assessing business continuity risks and strategies for operational resilience and regulatory compliance.

Download

Contract Agreement Between Two Parties

An England & Wales agreement authorizing freight agents, detailing territory, commissions, and compliance in logistics.

Download

Common Terms Agreement

An England & Wales contract defining freight agent duties, compensation, and compliance for international logistics operations.

Download

Buyer Agency Agreement

A legal contract authorizing a real estate agent to represent a buyer in property transactions.

Download

Subordination Agreement Mortgage

An English law agreement establishing priority ranking between multiple mortgage securities over the same property.

Download

Statement Of Agreement

A formal document under English and Welsh law recording mutual understanding and agreement between parties regarding specific terms and conditions.

Download

Rent In Exchange For Services Agreement

An English law agreement establishing terms for rent-free accommodation in exchange for specified services.

Download

Preliminary Contract

An English law agreement setting out initial terms and conditions between parties before finalizing a detailed contract.

Download

Catering Contract

A legally binding agreement for catering services under English and Welsh law, establishing terms between food service providers and clients.

Download

Lease Agreement

An England and Wales-governed agreement between landlord and tenant establishing terms for property rental and occupation.

Download

Security Agreement Form

An English law document creating security interests over assets to secure obligations owed to a secured party.

Download

Business Cooperation Agreement

A formal agreement governing business collaboration between parties, regulated under English and Welsh law.

Download

Terms Of Business Agreement

A legally binding agreement under English and Welsh law that establishes the core terms and conditions for business relationships between commercial entities.

Download

Consulting Agreement

A legally binding agreement under English and Welsh law that establishes terms for consulting services between a consultant and client.

Download

Professional Services Retainer Agreement

An English law agreement establishing terms for ongoing professional services delivery between provider and client.

Download

Head Of Terms Agreement

A preliminary agreement under English and Welsh law outlining key terms and conditions for a proposed business transaction or arrangement.

Download

Supply Contract Form

A legally binding agreement under English and Welsh law governing the supply of goods or services between parties.

Download

Business Contract

A legally binding commercial agreement between business entities, governed by English and Welsh law.

Download

Dispute Resolution Agreement

An English law agreement setting out procedures for resolving disputes between parties through mediation, arbitration, and other resolution methods.

Download

Umbrella Agreement

A master agreement under English and Welsh law that establishes core terms for multiple future contracts between parties.

Download

Software Agreement Contract

An English law agreement governing software licensing, usage, and maintenance terms between provider and licensee.

Download

Professional Services Contract

An English law-governed agreement establishing terms and conditions for professional service delivery between service provider and client.

Download

Consulting Services Agreement

An England and Wales-governed agreement setting out terms for the provision of professional consulting services between a consultant and client.

Download

Assignment And Assumption Agreement

A legal document under English and Welsh law that transfers rights and obligations from one party to another, with the receiving party assuming associated responsibilities.

Download

Yearly Contract Agreement

A US-governed agreement establishing terms and conditions for a twelve-month contractual relationship between parties.

Download

Work For Hire Agreement

A U.S.-governed agreement establishing ownership rights and terms for work created by a contractor for a hiring party, under copyright law.

Download

Work Contract

A legally binding employment agreement that establishes terms and conditions of employment under U.S. federal and state laws.

Download

White Label Agreement

A U.S.-governed agreement enabling one company to rebrand and sell another company's products or services under their own brand name.

Download

Website Development Agreement

A U.S.-compliant legal agreement between a website developer and client establishing terms for website development services, including scope, timeline, and deliverables.

Download

Website Contract

A U.S.-governed legal agreement between website developers and clients defining website development terms and obligations.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it