Commission Based Employment Contract Template for Switzerland

A Commission Based Employment Contract is a specialized employment agreement that governs working relationships where your compensation depends significantly on performance-based earnings rather than a fixed salary alone. Under Swiss law, specifically the Swiss Code of Obligations Articles 319-362, these contracts must balance performance incentives with mandatory employee protections and clearly define how commissions are calculated, paid, and potentially recovered.

When do you need this document?

You need this contract when hiring or working in roles where commission forms a substantial part of compensation. This includes sales representatives, real estate agents, insurance brokers, business development managers, and account executives. The document becomes essential when establishing clear expectations for commission calculations, payment schedules, and performance metrics. You should also use this contract when your role involves client relationship management where ongoing commissions may apply, or when transitioning from a fixed salary to a performance-based compensation structure. Companies expanding their sales teams or implementing new commission structures require this document to ensure legal compliance and prevent disputes.

Key legal considerations

Commission-based employment contracts must comply with Swiss minimum wage requirements and cannot circumvent mandatory employee protections. Your contract should specify the commission calculation method, payment frequency, and any clawback provisions for cancelled or returned sales. Under Swiss law, you're entitled to receive earned commissions even after employment termination, provided the sales were completed during your employment period. The contract must address how commissions are handled during notice periods and whether you're entitled to commissions from ongoing client relationships. Consider including provisions for commission advances, territory restrictions, and dispute resolution mechanisms. The agreement should also clarify whether commissions are pensionable earnings for social security purposes and how they're treated for tax withholding.

Legal requirements in Switzerland

Swiss employment law requires commission-based contracts to include minimum notice periods as specified in the Code of Obligations, typically one to three months depending on service length. Your contract must comply with the Federal Act on Labor Law regarding working hours and rest periods, even when compensation is performance-based. Social security contributions under the AHVG must be calculated on total compensation including commissions, and your employer must provide proper documentation for tax purposes. The contract must respect Swiss regulations on commercial agency agreements when applicable, particularly for roles involving ongoing client relationships. You're entitled to annual vacation time and public holidays regardless of commission-based compensation, and the contract cannot waive your rights to workplace safety protections or discrimination safeguards. Swiss courts require clear, written terms for commission calculations to prevent disputes, and any performance metrics must be objectively measurable and achievable.