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Commission Employment Contract

Commission Employment Contract Template for Malaysia

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Key Requirements PROMPT example:

Commission Employment Contract

"I need a Commission Employment Contract for a pharmaceutical sales representative position, with a 60/40 commission-to-base salary split and territory coverage for East Malaysia, starting March 1, 2025."

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Document background
This Commission Employment Contract is designed for use in Malaysia when engaging employees whose compensation includes a commission-based component. It is particularly relevant for sales-focused roles and industries where performance-based pay is standard practice. The document ensures compliance with Malaysian employment law while providing a clear framework for commission calculations, payment terms, and employment conditions. It includes essential provisions required by the Employment Act 1955 and related Malaysian legislation, such as minimum wage compliance, statutory benefits, and employee protections. The contract is structured to accommodate various commission models while maintaining legal enforceability and protecting both employer and employee interests in the Malaysian jurisdiction.
Suggested Sections

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

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', etc.

4. Appointment: Terms of employment, position title, and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, reporting structure, and performance expectations

6. Commission Structure: Base commission rates, calculation methods, and payment terms

7. Payment Terms: Timeline for commission payments, payment methods, and any minimum guaranteed payments

8. Working Hours: Expected working hours, flexibility arrangements, and overtime policies

9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Malaysian law

10. Confidentiality: Obligations regarding company confidential information and trade secrets

11. Non-Competition: Restrictions on working with competitors during and after employment

12. Termination: Conditions and procedures for termination by either party

13. Governing Law: Specification of Malaysian law as governing law and jurisdiction

Optional Sections

1. Probationary Period: Terms of initial probationary period, if applicable

2. Performance Targets: Specific sales or performance targets, if tied to commission rates

3. Team Commission Structure: Commission sharing or team-based incentives for employees managing teams

4. International Travel: Terms for international business travel and related expenses

5. Remote Working: Provisions for remote work arrangements and related policies

6. Training Requirements: Mandatory training programs and professional development expectations

7. Vehicle Allowance: Terms for vehicle usage or allowance for sales-related travel

8. Product-Specific Terms: Special terms related to specific product lines or services

Suggested Schedules

1. Commission Calculation Methods: Detailed formulas and examples of commission calculations

2. Territory Map: Defined geographical areas or customer segments assigned to the employee

3. Product Price List: Current pricing and commission rates for different products or services

4. Performance Metrics: Detailed KPIs and measurement criteria for performance evaluation

5. Benefits Schedule: Details of additional benefits, insurance coverage, and allowances

6. Expense Policy: Guidelines for reimbursable expenses and claim procedures

7. Reporting Templates: Standard formats for sales reporting and commission calculations

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

Insurance

Financial Services

Telecommunications

Automotive

Technology Sales

Pharmaceutical Sales

Manufacturing

Direct Sales

Media and Advertising

Travel and Tourism

Relevant Teams

Sales

Business Development

Account Management

Human Resources

Legal

Finance

Compensation and Benefits

Operations

Territory Management

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Agent

Financial Advisor

Sales Executive

Account Executive

Territory Manager

Sales Director

Commission-based Consultant

Relationship Manager

Sales Engineer

Medical Sales Representative

Advertising Sales Executive

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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