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Salary Plus Commission Agreement
"I need a Salary Plus Commission Agreement for a senior sales manager position in the software industry, with a tiered commission structure based on quarterly targets and a team override commission for managing five direct reports, to commence March 1, 2025."
1. Parties: Identifies the employer and employee with their full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement, including commission-related terminology
4. Appointment and Duration: Details of the position, commencement date, and term of employment
5. Duties and Responsibilities: Outline of the employee's key responsibilities and performance expectations
6. Base Salary: Details of the fixed salary component, payment frequency, and review mechanisms
7. Commission Structure: Detailed explanation of commission calculations, qualifying sales/transactions, and payment terms
8. Payment Terms: Timing and method of salary and commission payments, including any holdback periods
9. Targets and Performance Metrics: Specific sales or performance targets that affect commission earnings
10. Working Hours and Location: Standard working hours, location, and any flexibility arrangements
11. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Hong Kong law
12. Termination: Conditions and procedures for termination by either party
13. Post-Termination Commission: Treatment of commission for deals closed before but paid after termination
14. Confidentiality: Protection of confidential information and trade secrets
15. Governing Law: Specification of Hong Kong law as governing law and jurisdiction
1. Probation Period: Details of initial probation period if applicable, including any modified commission terms
2. Non-Compete and Non-Solicitation: Restrictions on post-employment activities, if required for senior sales positions
3. Expense Reimbursement: Policy on business expense reimbursement if applicable to the role
4. Benefits: Additional benefits beyond statutory requirements such as health insurance or car allowance
5. Bonus Arrangements: Any additional bonus schemes beyond the commission structure
6. Intellectual Property: IP rights provisions if employee may create intellectual property in their role
7. Remote Working: Provisions for remote work arrangements if applicable
8. Team Commission Structures: For roles involving team sales or management commission splits
1. Schedule 1: Commission Rates: Detailed breakdown of commission percentages, tiers, and any accelerators
2. Schedule 2: Sales Territory: Definition of geographical territory or client accounts assigned to employee
3. Schedule 3: Performance Metrics: Detailed KPIs and calculation methodologies for performance assessment
4. Schedule 4: Product/Service List: List of products/services qualifying for commission and their respective rates
5. Appendix A: Commission Calculation Examples: Practical examples showing how commission is calculated in various scenarios
6. Appendix B: Monthly Report Template: Template for tracking and reporting sales and commission calculations
Authors
Financial Services
Real Estate
Insurance
Technology Sales
Telecommunications
Retail
Manufacturing
Professional Services
Media and Advertising
Pharmaceutical Sales
Automotive
Consumer Goods
Industrial Equipment
Software and SaaS
Recruitment and Staffing
Sales
Business Development
Account Management
Commercial
Revenue
Marketing
Product Sales
Channel Sales
Enterprise Sales
Solutions
Business Solutions
Direct Sales
Indirect Sales
Inside Sales
Field Sales
Sales Representative
Business Development Manager
Account Executive
Sales Manager
Regional Sales Director
Commercial Director
Real Estate Agent
Insurance Agent
Recruitment Consultant
Marketing Manager
Product Specialist
Channel Manager
Solutions Architect
Enterprise Account Manager
Inside Sales Representative
Sales Engineer
Business Development Executive
Territory Manager
Commission-based Consultant
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