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Employer Employee Sales Commission Agreement for Philippines

Employer Employee Sales Commission Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions of employment for sales personnel working on a commission basis. The document outlines the commission structure, sales targets, payment terms, and performance expectations while ensuring compliance with Philippine labor laws, including the Labor Code and relevant DOLE regulations. It addresses both the fixed and variable components of compensation, reporting requirements, and the rights and obligations of both employer and employee in the context of a sales-focused role.

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Employer Employee Sales Commission Agreement

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What is a Employer Employee Sales Commission Agreement?

The Employer Employee Sales Commission Agreement is designed for use in the Philippine business context where companies wish to employ sales personnel on a commission-based compensation structure. This agreement is particularly relevant when organizations need to formalize their relationship with sales employees while ensuring compliance with Philippine labor laws and regulations. The document combines standard employment terms with specific provisions for commission-based compensation, including detailed commission structures, sales targets, and performance metrics. It addresses crucial aspects such as territory assignments, reporting requirements, and payment terms while incorporating necessary protections for both employer and employee. The agreement is structured to comply with the Labor Code of the Philippines and relevant Department of Labor and Employment (DOLE) regulations, making it suitable for both domestic and multinational companies operating in the Philippines.

What sections should be included in a Employer Employee Sales Commission Agreement?

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

2. Background: Brief 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 and Term: Terms of employment, position title, and duration (fixed-term or indefinite)

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

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

7. Base Salary and Benefits: Details of any base salary and statutory benefits as per Philippine labor law

8. Payment Terms: Timeline and method of commission payments, including treatment of pending sales upon termination

9. Targets and Quotas: Sales targets, minimum performance requirements, and evaluation metrics

10. Reporting Requirements: Sales reporting obligations, documentation requirements, and submission deadlines

11. Confidentiality: Protection of company information and trade secrets

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment

13. Termination: Grounds and procedures for termination, notice periods, and final settlements

14. Governing Law: Specification of Philippine law as governing law and jurisdiction

15. General Provisions: Standard clauses including amendments, severability, and entire agreement

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

1. Training and Support: Details of sales training programs and support provided by the employer, included when specific training requirements exist

2. Expense Reimbursement: Policy on reimbursable expenses and approval process, included when travel or client entertainment is required

3. Team Leadership: Additional responsibilities and compensation for managing other sales staff, included for senior sales positions

4. International Sales: Special provisions for international sales activities, included when role involves cross-border transactions

5. Remote Work Provisions: Terms and conditions for remote work arrangements, included when applicable

6. Intellectual Property: IP rights related to sales materials and customer relationships, included when employee creates content or materials

7. Performance Review Process: Detailed performance evaluation procedures, included when formal review processes exist

What schedules should be included in a Employer Employee Sales Commission Agreement?

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products/services

2. Schedule B - Sales Territory: Definition and map of assigned sales territory or customer accounts

3. Schedule C - Product List: List of products/services the employee is authorized to sell

4. Schedule D - Benefits Package: Details of additional benefits beyond statutory requirements

5. Schedule E - Sales Targets: Quarterly/annual sales targets and bonus thresholds

6. Appendix 1 - Reporting Templates: Standard forms for sales reporting and commission calculations

7. Appendix 2 - Expense Policy: Detailed policy on reimbursable expenses and claim 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

Philippines

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Retail

Real Estate

Financial Services

Technology

Manufacturing

Pharmaceuticals

Telecommunications

Insurance

Automotive

Consumer Goods

Professional Services

Medical Devices

Industrial Equipment

Software and IT

Relevant Teams

Sales

Human Resources

Legal

Finance

Compensation and Benefits

Operations

Business Development

Commercial

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Territory Manager

Regional Sales Director

Inside Sales Representative

Outside Sales Representative

Sales Consultant

Senior Sales Executive

Key Account Manager

Sales Development Representative

Channel Sales Manager

Product Sales Specialist

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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