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Commission Based Employment Contract

Commission Based Employment Contract Template for New Zealand

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Key Requirements PROMPT example:

Commission Based Employment Contract

"I need a Commission Based Employment Contract for a senior sales representative in the software industry, with a 70/30 commission-to-base-salary split and quarterly performance reviews, to be implemented from March 2025."

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Document background
This Commission Based Employment Contract is designed for use in New Zealand business contexts where employees are compensated fully or partially through commission-based arrangements. It is particularly suited for sales-oriented positions and roles where performance-based compensation is standard practice. The document incorporates all necessary elements required by New Zealand employment law, including compliance with the Employment Relations Act 2000, Wages Protection Act 1983, and other relevant legislation. It provides comprehensive coverage of commission structures, calculation methodologies, payment terms, and performance expectations, while ensuring that all minimum employment standards and employee protections are maintained. This agreement is essential for businesses looking to establish clear, legally compliant commission-based employment relationships in the New Zealand market.
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: Key terms used throughout the agreement, including specific commission-related terminology

4. Position and Duties: Job title, role description, key responsibilities, and reporting relationships

5. Commission Structure: Detailed explanation of the commission calculation method, rates, and conditions

6. Base Salary (if applicable): Any fixed component of remuneration separate from commission

7. Payment Terms: Timing and method of commission payments, payment cycles, and processing details

8. Targets and Performance Metrics: Sales or performance targets that affect commission calculations

9. Hours of Work: Expected working hours, flexibility provisions, and overtime arrangements

10. Leave Entitlements: Annual, sick, and other leave entitlements, including calculation of leave pay with variable income

11. KiwiSaver: KiwiSaver arrangements and calculations based on commission income

12. Confidentiality: Protection of confidential information and trade secrets

13. Termination: Notice periods, grounds for termination, and final commission payment arrangements

14. Dispute Resolution: Process for resolving disputes related to commission calculations or other employment matters

15. General Provisions: Standard contractual terms including governing law and amendments

Optional Sections

1. Non-Compete Clause: Restrictions on working for competitors, used for senior sales roles or when dealing with sensitive client relationships

2. Client Non-Solicitation: Restrictions on soliciting clients post-employment, relevant for client-facing sales roles

3. Team Performance Bonuses: Additional incentives based on team or company performance, used in collaborative sales environments

4. Vehicle Allowance: Terms for vehicle usage or allowance, relevant for sales roles requiring travel

5. Expense Reimbursement: Policy on business expense claims, relevant for roles with significant client entertainment or travel

6. Remote Work Provisions: Terms for working remotely or from home, if applicable to the role

7. International Travel: Terms for international business travel and associated compensation, for roles with international clients

Suggested Schedules

1. Schedule 1: Commission Calculation Formula: Detailed mathematical formulas and examples of commission calculations

2. Schedule 2: Sales Territories: Definition of geographical or client portfolio boundaries

3. Schedule 3: Performance Targets: Specific sales targets and associated commission tiers

4. Schedule 4: Product/Service Commission Rates: Different commission rates for various products or services

5. Schedule 5: Bonus Structure: Additional incentive schemes and qualification criteria

6. Appendix A: Expense Policy: Detailed policy on claimable expenses and submission procedures

7. Appendix B: Code of Conduct: Expected behavioral standards and sales practices

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

Telecommunications

Automotive Sales

Pharmaceutical Sales

Advertising and Media

Professional Services

Manufacturing and Distribution

Travel and Tourism

Recruitment and Staffing

Relevant Teams

Sales

Business Development

Account Management

Commercial

Revenue

Distribution

Retail Operations

Channel Partners

Direct Sales

Inside Sales

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Broker

Recruitment Consultant

Account Executive

Sales Manager

Commission-based Consultant

Mortgage Broker

Car Sales Executive

Territory Sales Manager

Commercial Property Agent

Financial Advisor

Media Sales Executive

Sales Development Representative

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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