A Commission Demand Letter is a crucial business document used when formal attempts are needed to collect unpaid commission fees in Malaysia. This document becomes necessary when informal attempts to collect commission payments have failed or when there's a need to establish a formal record of the demand. The letter must comply with Malaysian legal requirements, particularly under the Contracts Act 1950 and Employment Act 1955, and typically includes specific details about the commission arrangement, calculation of amounts owed, and payment terms. It serves as both a professional courtesy and a legal prerequisite before pursuing further legal action, providing the recipient with one final opportunity to settle the outstanding commission before more serious legal measures are taken. The document is particularly important in commission-based industries where clear documentation of payment obligations is essential for maintaining professional relationships while protecting legal rights.

1. Recipient Details: Full name, title, and address of the recipient and their company

2. Subject Line: Clear indication that this is a formal demand for commission payment

3. Reference Numbers: Any relevant contract numbers, employee IDs, or previous correspondence references

4. Commission Background: Brief explanation of the commercial relationship and commission agreement

5. Specific Claims: Detailed breakdown of commission amounts owed with relevant dates and transactions

6. Legal Basis: Reference to contractual obligations and relevant laws supporting the claim

7. Payment Demand: Clear statement of total amount demanded and payment deadline

8. Consequences: Statement of intended legal action if payment is not received by the deadline