An employee in retail or sales industry can receive the pay in several methods. It will be paid on salary base, by hour or based on commission. When someone is paid on commission, it is important and advisable to provide commission agreement before the employment starts. There are some benefits when someone has this document because it relates to the professionalism and someone’s right of getting salary for what he or she has done before. Basically, sales commission agreement is a contract or agreement between the employer and worker for employment that paid based on commission or receive commission out of the main salary.

Using Sales Commission Agreement
Both employer and worker, providing this document is advisable by evaluating each clauses and articles. The document has function to clarify and make formality of right, expectations and obligation from workers and the employer. Using the agreement for the employer will prove the value when hiring new employee with basic pay on commission. The agreement will officially record the right and obligation between two parties. The contract is also valuable for the worker to ensure what he or she deserves for as well the duties he or she must be performed are documented well. When each party has one for each, any dispute related to agreement breach will be able to be minimized.

The Detail Points to Enclose in Sales Commission Agreement
• Employment with details about the one’s employment position as well as the obligation to contribute service toward the company and right or reimbursement for what contributed.
• Best Performance of Worker points the agreement from the employee to give service as what expected by the employer.
• Worker’s Compensation with details of any rewards for all contribution, service and role in handling duties or role to increase the company profits.
• Commission Payment relates to the commission percentage that deserved to receive by the associate besides the time of payment.

The document outlines the right and obligation of both parties so each understands what to do and what to receive in the future. The agreement also has alternate terms for this kind of documents such as commission contract, commission agreement or commission sales agreement that basically contain same matters that are work contract details. Since it will involve both sides, every rights and expectation must be provided in details and must be well understood of each party to avoid any dispute due to case of misunderstanding especially related to the commission matters that deserve to receive by the employee. If you are looking a sales commission agreement template or sample to be used as a reference, you can download the Microsoft Word document below.

  Commission Agreement Template (60.0 KiB, 8,120 hits)