Commission Employment Contract

Commission Employment Contract Template for Denmark

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Document background

The Commission Employment Contract is designed for use in situations where an employee's compensation is partially or fully based on commission earnings. This document type is essential for Danish employers hiring sales professionals and other revenue-generating roles where performance-based compensation is appropriate. The contract complies with Danish employment law, including the Danish Salaried Employees Act (Funktionærloven) and Commission Act (Kommissionsloven), while providing a clear framework for commission calculations, payment terms, and performance expectations. It includes necessary provisions for employment protection, working hours, holiday entitlements, and notice periods, making it suitable for both full-time and part-time commission-based positions in Denmark.

Suggested Sections

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

2. Background: Brief 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, responsibilities, and reporting lines

5. Commencement and Duration: Start date and type of employment (fixed-term or permanent)

6. Commission Structure: Detailed explanation of commission calculation, base salary (if any), and payment terms

7. Working Hours: Standard working hours, flexibility requirements, and overtime provisions

8. Place of Work: Primary workplace location and any mobility requirements

9. Holiday Entitlement: Annual leave entitlement and holiday pay calculations as per Danish Holiday Act

10. Sickness and Absence: Procedures for reporting absence and sick pay entitlements

11. Confidentiality: Obligations regarding company and client confidential information

12. Data Protection: Handling of personal data in compliance with GDPR and Danish law

13. Notice Period: Notice requirements for termination by either party

14. Post-Termination Restrictions: Non-compete and non-solicitation provisions if applicable

15. Governing Law: Specification of Danish law as governing law and jurisdiction

Optional Sections

1. Probationary Period: Include when a trial period is desired at the start of employment

2. Company Car/Equipment: Include when providing company vehicles or significant equipment

3. Pension Scheme: Include when offering pension benefits beyond mandatory requirements

4. Insurance Benefits: Include when providing additional insurance coverage

5. Training and Development: Include when specific training requirements or development programs are part of the role

6. International Travel: Include when role requires significant international travel

7. Bonus Scheme: Include when additional bonus structures exist beyond commission

8. Intellectual Property: Include when employee may create IP during employment

9. Garden Leave: Include for senior roles where garden leave might be required

Suggested Schedules

1. Commission Calculation Methods: Detailed formulas and examples of commission calculations

2. Sales Territories: Definition of geographical or client territories if applicable

3. Target Setting: Specific sales targets and their measurement periods

4. Benefits Package: Detailed description of all benefits and eligibility criteria

5. Company Policies: Reference to relevant company policies affecting the role

6. Expense Policy: Guidelines for business expense claims and reimbursement

7. Product List: List of products/services and associated commission rates if applicable

8. KPIs: Key Performance Indicators and measurement criteria

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