Employer Employee Sales Commission Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Employer Employee Sales Commission Agreement

"I need an Employer Employee Sales Commission Agreement for a Dubai-based software company, with a tiered commission structure starting at 5% for standard sales and increasing to 15% for enterprise deals, including specific provisions for international sales and team collaboration bonuses."

What is a Employer Employee Sales Commission Agreement?

The Employer Employee Sales Commission Agreement is essential for businesses operating in the UAE that employ sales professionals on a commission basis. This agreement type is specifically designed to comply with UAE Federal Decree-Law No. 33 of 2021 and related commercial regulations while establishing clear terms for commission-based compensation. It is typically used when hiring sales professionals where a significant portion of their compensation will be based on sales performance. The document combines standard employment terms required by UAE labor law with detailed commission structures, sales territories, and performance metrics. It provides legal protection for both parties by clearly defining commission calculations, payment terms, sales targets, and territorial rights, while ensuring all provisions align with UAE employment regulations and commercial laws.

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

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

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

3. Definitions: Key terms used throughout the agreement including 'Commission', 'Sales', 'Territory', 'Customers', and 'Products'

4. Appointment and Term: Employment status, position title, and duration of the agreement

5. Base Salary: Fixed compensation component as per UAE Labor Law requirements

6. Commission Structure: Detailed explanation of commission rates, calculation methods, and earning conditions

7. Sales Targets and Quotas: Definition of minimum performance expectations and sales goals

8. Payment Terms: Timing and method of commission payments, including any holdback periods

9. Duties and Responsibilities: Specific sales-related responsibilities and reporting requirements

10. Territory and Customer Assignment: Definition of sales territory and any exclusive customer relationships

11. Confidentiality: Protection of company information and trade secrets

12. Non-Competition and Non-Solicitation: Post-employment restrictions as permitted under UAE law

13. Termination: Conditions for ending the agreement and impact on commission payments

14. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution procedures

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

1. Team Leadership Bonus: Additional compensation for managing other sales representatives

2. International Sales: Special provisions for sales outside the UAE

3. Product Training: Requirements for ongoing product knowledge development

4. Expense Reimbursement: Terms for sales-related expense claims

5. Performance Review Process: Formal evaluation procedures and frequency

6. Remote Work Provisions: Terms for remote sales activities and reporting

7. Digital Sales Channels: Commission structure for online or digital sales

8. Split Commission Rules: Guidelines for sharing commissions on collaborative sales

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

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages by product type, sales volume, or customer category

2. Schedule B - Sales Territory Map: Geographic or customer segment definitions of assigned territory

3. Schedule C - Product List: List of products/services covered under the commission structure

4. Schedule D - Sales Targets: Quarterly or annual sales targets and corresponding bonus structures

5. Schedule E - Reporting Templates: Standard forms for sales reporting and commission calculations

6. Appendix 1 - Commission Calculation Examples: Practical examples of commission calculations in various scenarios

7. Appendix 2 - Key Performance Indicators: Detailed metrics used to evaluate sales performance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Information Technology

Financial Services

Telecommunications

Automotive

Industrial Equipment

Healthcare

Insurance

Retail

Manufacturing

Professional Services

Consumer Goods

Media and Advertising

Construction Materials

Energy and Utilities

Relevant Teams

Sales

Human Resources

Legal

Finance

Operations

Business Development

Account Management

Commercial Operations

Revenue Operations

Compensation and Benefits

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Regional Sales Director

Territory Manager

Inside Sales Representative

Outside Sales Representative

Sales Consultant

Key Account Manager

Channel Sales Manager

Sales Engineer

Technical Sales Specialist

Senior Sales Executive

Vice President of Sales

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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