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Independent Contractor Commission Agreement Template for New Zealand

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Key Requirements PROMPT example:

Independent Contractor Commission Agreement

"I need an Independent Contractor Commission Agreement for our software sales business, starting March 2025, with tiered commission rates based on sales volume and specific territory assignments for the Auckland region."

Document background
The Independent Contractor Commission Agreement is designed for situations where businesses in New Zealand engage independent contractors on a commission basis rather than as employees. This document is particularly relevant for sales-oriented businesses, professional services, and industries where performance-based compensation is common. The agreement ensures compliance with New Zealand's Contract and Commercial Law Act 2017, tax legislation, and other relevant regulations while clearly establishing the contractor's independent status. It includes detailed provisions for commission calculations, payment terms, service expectations, and professional obligations, making it suitable for various commercial arrangements where contractors are compensated based on their performance or sales achievements. The document helps both parties clearly understand their rights, obligations, and the commercial nature of their relationship.
Suggested Sections

1. Parties: Identifies the contracting parties - the principal company and the independent contractor

2. Background: Sets out the context of the agreement, including the nature of the principal's business and the contractor's services

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Establishes the contractor's appointment, term of engagement, and any renewal provisions

5. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employment

6. Services: Details the services to be provided by the contractor

7. Commission Structure: Defines the commission rates, calculation methods, and payment terms

8. Payment Terms: Specifies payment timing, invoicing requirements, and tax obligations

9. Obligations of the Contractor: Lists the contractor's duties, responsibilities, and performance standards

10. Obligations of the Principal: Details the company's responsibilities to the contractor

11. Intellectual Property: Addresses ownership and use of intellectual property created during the engagement

12. Confidentiality: Protects confidential information of both parties

13. Termination: Sets out grounds and process for ending the agreement

14. Post-Termination Obligations: Specifies obligations that survive after the agreement ends

15. General Provisions: Includes standard clauses like governing law, notices, and entire agreement

Optional Sections

1. Non-Compete: Restricts contractor from competing activities - include when contractor will have access to sensitive business information or significant client contact

2. Insurance Requirements: Specifies required insurance coverage - include when services involve significant risks or regulatory requirements

3. Performance Targets: Sets specific performance metrics - include when commission structure is tied to performance benchmarks

4. Expenses: Details reimbursable expenses - include when contractor may incur expenses on behalf of principal

5. Sub-contracting: Addresses ability to sub-contract services - include when contractor might need to delegate work

6. Territory Rights: Defines geographical areas of operation - include when territory exclusivity is granted

7. Training Requirements: Specifies required training or certifications - include for regulated industries or specific skill requirements

8. Dispute Resolution: Details specific dispute resolution procedures - include for high-value or complex arrangements

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of services to be provided

2. Schedule 2 - Commission Rates and Calculations: Detailed breakdown of commission structures, including any tiered rates or bonus schemes

3. Schedule 3 - Territory Map: Geographical areas covered by the agreement, if applicable

4. Schedule 4 - Performance Metrics: Specific KPIs or targets for performance measurement

5. Schedule 5 - Approved Expenses: List of pre-approved expenses and reimbursement procedures

6. Appendix A - Required Forms: Standard forms for reporting, invoicing, or performance tracking

7. Appendix B - Compliance Requirements: Industry-specific compliance requirements or standards

Authors

Alex Denne

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

Relevant legal definitions


























Clauses







































Relevant Industries

Real Estate

Insurance

Financial Services

Retail

Technology Sales

Professional Services

Recruitment

Advertising and Media

Manufacturing

Distribution and Wholesale

Automotive Sales

Telecommunications

Relevant Teams

Legal

Human Resources

Sales Operations

Finance

Compliance

Commercial Operations

Business Development

Procurement

Administration

Relevant Roles

Sales Director

Business Development Manager

Human Resources Director

Legal Counsel

Commercial Manager

Procurement Manager

Operations Director

Finance Manager

Compliance Officer

Contract Administrator

Sales Operations Manager

Regional Manager

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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