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The Commission Pay Agreement is designed for use in New Zealand business contexts where performance-based compensation forms a significant part of an individual's remuneration package. This document is essential when establishing clear, legally compliant terms for commission-based pay structures, whether for employees or independent contractors. It addresses the requirements of New Zealand employment law, including the Employment Relations Act 2000 and Wages Protection Act 1983, while providing a framework for commission calculations, payment terms, and performance metrics. The agreement is particularly relevant in sales-driven industries where commission forms part of the total compensation package and helps prevent disputes by clearly documenting the terms of the commission arrangement.

1. Parties: Identifies and defines the parties to the agreement - typically the employer and the employee/contractor

2. Background: Sets out the context of the agreement and the intention to establish a commission-based payment structure

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

4. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions

5. Commission Structure: Details the basic commission rates, tiers, or percentages applicable

6. Calculation Method: Explains how commission will be calculated, including the basis (gross/net sales) and any adjustments

7. Payment Terms: Specifies when and how commission payments will be made, including payment frequency and method

8. Sales Attribution: Defines how sales are attributed and what constitutes a qualifying sale

9. Reporting and Records: Outlines the sales reporting process and record-keeping requirements

10. Adjustments and Clawbacks: Explains circumstances where commission may be adjusted or reclaimed

11. Termination Provisions: Details what happens to commission upon termination of employment/contract

12. Dispute Resolution: Establishes the process for resolving any disputes about commission calculations or payments

13. General Provisions: Standard contract clauses including governing law, entire agreement, and amendments