Contract For Commission Based Employment for Australia

Contract For Commission Based Employment Template for Australia

This document is an Australian employment contract specifically designed for commission-based employment arrangements. It outlines the terms and conditions of employment where all or part of the employee's compensation is earned through commissions. The contract complies with Australian employment law, including the Fair Work Act 2009 and relevant state legislation, while detailing commission structures, performance expectations, and payment terms. It includes provisions for base salary (if applicable), commission calculations, payment schedules, performance targets, and essential employment terms required under Australian law.

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What is a Contract For Commission Based Employment?

The Contract For Commission Based Employment is essential for Australian businesses engaging employees under commission-based compensation structures. This document is particularly relevant when an organization wishes to establish a formal employment relationship where remuneration is partially or fully based on achieved sales or performance metrics. It ensures compliance with Australian employment legislation while protecting both employer and employee interests through clear commission structures, performance expectations, and payment terms. The contract is commonly used in sales-driven industries and includes comprehensive details about commission calculations, payment schedules, territory assignments, and performance targets, while incorporating mandatory employment terms required under Australian law, including the National Employment Standards.

What sections should be included in a Contract For Commission Based Employment?

1. Parties: Identification of the employer and employee, including their full legal names and addresses

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

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

4. Term of Employment: Duration of employment, including start date and whether fixed-term or permanent

5. Role and Duties: Detailed description of the employee's position, responsibilities, and reporting relationships

6. Commission Structure: Core commission calculation methods, rates, and conditions for earning commission

7. Base Salary and Benefits: Any base salary component and statutory benefits including superannuation

8. Payment Terms: Timing and method of commission payments, including treatment of pending commissions upon termination

9. Performance Standards: Required performance levels and sales targets

10. Hours of Work: Expected working hours and flexibility arrangements

11. Leave Entitlements: Annual leave, personal leave, and other leave entitlements as per National Employment Standards

12. Confidentiality: Protection of confidential information and trade secrets

13. Termination: Grounds for termination and notice periods

14. Post-Employment Obligations: Restraint of trade and non-solicitation provisions

15. General Provisions: Standard contractual clauses including governing law and entire agreement

What sections are optional to include in a Contract For Commission Based Employment?

1. Probationary Period: Include when the employment begins with a probationary period

2. Equipment and Resources: Include when the employer provides specific tools or resources

3. Expense Reimbursement: Include when the role involves reimbursable expenses

4. Remote Work Arrangements: Include when the role involves remote or hybrid working

5. Team Management: Include when the role involves supervision of other employees

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

7. Intellectual Property: Include when the role involves creation of IP

8. KPI Adjustments: Include when KPIs may be subject to periodic review and adjustment

9. Clawback Provisions: Include when commission payments may be subject to clawback under specific circumstances

What schedules should be included in a Contract For Commission Based Employment?

1. Schedule 1 - Detailed Commission Structure: Comprehensive breakdown of commission rates, tiers, and calculation methods

2. Schedule 2 - Performance Metrics: Detailed KPIs and performance measurement criteria

3. Schedule 3 - Territory/Client Allocation: Definition of sales territory or allocated client base

4. Schedule 4 - Bonus Schemes: Additional incentive schemes or bonus structures

5. Schedule 5 - Restraint of Trade: Detailed post-employment restrictions including geographical and temporal limits

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

7. Appendix B - Reporting Templates: Standard templates for sales and commission reporting

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

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Financial Services

Insurance

Retail

Technology Sales

Automotive Sales

Telecommunications

Recruitment

Advertising

Medical Device Sales

Pharmaceutical Sales

Manufacturing Sales

Relevant Teams

Sales

Business Development

Account Management

Channel Sales

Direct Sales

Field Sales

Inside Sales

Commercial

Retail Operations

Revenue

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Broker

Recruitment Consultant

Account Executive

Sales Manager

Commission-Only Sales Agent

Territory Sales Manager

Medical Sales Representative

Mortgage Broker

Retail Sales Consultant

Channel Sales Manager

Direct Sales Representative

Investment Advisor

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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