This Commission Employment Contract is designed for use in Malaysia when engaging employees whose compensation includes a commission-based component. It is particularly relevant for sales-focused roles and industries where performance-based pay is standard practice. The document ensures compliance with Malaysian employment law while providing a clear framework for commission calculations, payment terms, and employment conditions. It includes essential provisions required by the Employment Act 1955 and related Malaysian legislation, such as minimum wage compliance, statutory benefits, and employee protections. The contract is structured to accommodate various commission models while maintaining legal enforceability and protecting both employer and employee interests in the Malaysian jurisdiction.
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Key Requirements PROMPT example:
Commission Employment Contract
"I need a Commission Employment Contract for a pharmaceutical sales representative position, with a 60/40 commission-to-base salary split and territory coverage for East Malaysia, starting March 1, 2025."
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 agreement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', etc.
4. Appointment: Terms of employment, position title, and commencement date
5. Duties and Responsibilities: Detailed description of the employee's role, reporting structure, and performance expectations
6. Commission Structure: Base commission rates, calculation methods, and payment terms
7. Payment Terms: Timeline for commission payments, payment methods, and any minimum guaranteed payments
8. Working Hours: Expected working hours, flexibility arrangements, and overtime policies
9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Malaysian law
10. Confidentiality: Obligations regarding company confidential information and trade secrets
11. Non-Competition: Restrictions on working with competitors during and after employment
12. Termination: Conditions and procedures for termination by either party
13. Governing Law: Specification of Malaysian law as governing law and jurisdiction
1. Probationary Period: Terms of initial probationary period, if applicable
2. Performance Targets: Specific sales or performance targets, if tied to commission rates
3. Team Commission Structure: Commission sharing or team-based incentives for employees managing teams
4. International Travel: Terms for international business travel and related expenses
5. Remote Working: Provisions for remote work arrangements and related policies
6. Training Requirements: Mandatory training programs and professional development expectations
7. Vehicle Allowance: Terms for vehicle usage or allowance for sales-related travel
8. Product-Specific Terms: Special terms related to specific product lines or services
1. Commission Calculation Methods: Detailed formulas and examples of commission calculations
2. Territory Map: Defined geographical areas or customer segments assigned to the employee
3. Product Price List: Current pricing and commission rates for different products or services
4. Performance Metrics: Detailed KPIs and measurement criteria for performance evaluation
5. Benefits Schedule: Details of additional benefits, insurance coverage, and allowances
6. Expense Policy: Guidelines for reimbursable expenses and claim procedures
7. Reporting Templates: Standard formats for sales reporting and commission calculations
Authors
Relevant legal definitions
Commission
Base Rate
Sales Period
Territory
Customers
Gross Sales
Net Sales
Payment Date
Products
Services
Employment Commencement Date
Working Hours
Confidential Information
Intellectual Property
Identity Card
Company
Employee
Sales Target
Commission Statement
Quarter
Financial Year
Business Day
Minimum Wage
Performance Metrics
Sales Documentation
Commission Period
Qualifying Sale
Commission Rate
Monthly Statement
Termination Date
Base Rate
Sales Period
Territory
Customers
Gross Sales
Net Sales
Payment Date
Products
Services
Employment Commencement Date
Working Hours
Confidential Information
Intellectual Property
Identity Card
Company
Employee
Sales Target
Commission Statement
Quarter
Financial Year
Business Day
Minimum Wage
Performance Metrics
Sales Documentation
Commission Period
Qualifying Sale
Commission Rate
Monthly Statement
Termination Date
Clauses
Appointment
Duration
Probation
Duties and Responsibilities
Commission Structure
Payment Terms
Minimum Wage Compliance
Working Hours
Leave Entitlements
Territory Assignment
Performance Targets
Reporting Requirements
Commission Calculations
Sales Documentation
Expenses
Benefits
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Training
Health and Safety
Data Protection
Termination
Notice Period
Return of Company Property
Dispute Resolution
Governing Law
Entire Agreement
Amendment
Severability
Force Majeure
Duration
Probation
Duties and Responsibilities
Commission Structure
Payment Terms
Minimum Wage Compliance
Working Hours
Leave Entitlements
Territory Assignment
Performance Targets
Reporting Requirements
Commission Calculations
Sales Documentation
Expenses
Benefits
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Training
Health and Safety
Data Protection
Termination
Notice Period
Return of Company Property
Dispute Resolution
Governing Law
Entire Agreement
Amendment
Severability
Force Majeure
Relevant Industries
Retail
Real Estate
Insurance
Financial Services
Telecommunications
Automotive
Technology Sales
Pharmaceutical Sales
Manufacturing
Direct Sales
Media and Advertising
Travel and Tourism
Relevant Teams
Sales
Business Development
Account Management
Human Resources
Legal
Finance
Compensation and Benefits
Operations
Territory Management
Relevant Roles
Sales Representative
Business Development Manager
Real Estate Agent
Insurance Agent
Financial Advisor
Sales Executive
Account Executive
Territory Manager
Sales Director
Commission-based Consultant
Relationship Manager
Sales Engineer
Medical Sales Representative
Advertising Sales Executive
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