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Commission Based Employment Contract Template for India

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Key Requirements PROMPT example:

Commission Based Employment Contract

"I need a Commission Based Employment Contract for a senior sales representative in the software industry, with a 70-30 commission-base salary split and specific provisions for international client dealings, starting from March 2025."

Document background
The Commission Based Employment Contract is designed for use in the Indian jurisdiction where employers wish to establish a formal employment relationship with individuals whose compensation is primarily or partially based on commission. This document is particularly relevant for sales-oriented roles and industries where performance-based pay is standard practice. The contract comprehensively addresses both the standard elements of employment relationships and the specific aspects of commission-based compensation, ensuring compliance with Indian employment laws including The Payment of Wages Act, 1936 and The Sales Promotion Employees (Conditions of Service) Act, 1976. It provides detailed frameworks for commission calculations, payment terms, performance metrics, and protection of business interests while maintaining clarity on employee rights and obligations.
Suggested Sections

1. Parties: Identification of the employer and employee with complete details

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including commission-related terminology

4. Appointment and Term: Details of the position, designation, and duration of employment

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

6. Commission Structure: Detailed explanation of the commission calculation methodology, payment terms, and conditions

7. Base Salary and Benefits: Details of any fixed salary component and additional benefits provided

8. Working Hours and Location: Specification of work timings, location, and flexibility arrangements

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Intellectual Property: Ownership and rights related to work products and innovations

11. Termination: Conditions and procedures for ending the employment relationship

12. Post-Termination Obligations: Continuing obligations after employment ends

13. Governing Law: Specification of Indian law as governing law and jurisdiction

14. General Provisions: Standard contractual clauses including notices, amendments, and entire agreement

Optional Sections

1. Non-Compete: Restrictions on working with competitors, used when employee has access to sensitive information or significant client relationships

2. Non-Solicitation: Restrictions on soliciting clients or employees, relevant for client-facing roles

3. Probation Period: Terms of initial probationary period, if applicable

4. Travel Requirements: Details of travel obligations and reimbursement policies, if role requires travel

5. Training and Development: Provisions for required training and professional development

6. Team Management: Additional responsibilities if employee will manage other staff

7. Expense Policy: Rules regarding business expense claims and reimbursements

8. Remote Work Provisions: Specific terms for remote working arrangements if applicable

Suggested Schedules

1. Schedule A - Commission Calculation Matrix: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule B - Performance Targets: Specific sales or performance targets that trigger commission payments

3. Schedule C - Benefits Package: Detailed description of all benefits and eligibility criteria

4. Schedule D - Territory/Client List: Definition of sales territory or assigned client accounts

5. Appendix 1 - Reporting Templates: Standard formats for sales reporting and commission calculations

6. Appendix 2 - Company Policies: Referenced company policies that form part of the employment terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Retail

Financial Services

Technology Sales

Pharmaceutical Sales

Automotive Sales

Telecommunications

Marketing and Advertising

Professional Services

Recruitment

Direct Sales

E-commerce

Manufacturing Sales

Relevant Teams

Sales

Business Development

Account Management

Marketing

Channel Partnerships

Customer Success

Retail Operations

Field Sales

Direct Sales

Commercial

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Agent

Sales Executive

Account Executive

Sales Manager

Commission-based Consultant

Marketing Representative

Channel Partner Manager

Territory Sales Manager

Recruitment Consultant

Investment Advisor

Customer Success Manager

Sales Director

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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