This Contract For Commission Based Employment is designed for use in Malaysia when establishing formal employment relationships where compensation is primarily or partially based on commission earnings. The document is essential for businesses operating in sales-driven industries and provides a legally compliant framework under Malaysian law for defining commission structures, performance expectations, and employment terms. It incorporates requirements from the Employment Act 1955 and other relevant Malaysian legislation while protecting both employer and employee interests through clear commission calculations, payment terms, and performance metrics. This type of agreement is particularly important for roles where earning potential is directly tied to sales performance or revenue generation, and it helps prevent future disputes by clearly documenting all aspects of the commission-based employment relationship.
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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-related terminology
4. Appointment and Duration: Terms of employment, position title, and duration (fixed-term or permanent)
5. Duties and Responsibilities: Detailed description of the employee's role, targets, and performance expectations
6. Commission Structure: Core commission calculation methodology, base rates, and payment terms
7. Payment Terms: Payment schedule, method of payment, and treatment of commissions upon termination
8. Working Hours and Leave: Standard working hours, leave entitlements, and public holidays
9. Confidentiality: Protection of company confidential information and trade secrets
10. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
11. Termination: Grounds for termination, notice periods, and consequences for commission payments
12. Governing Law: Specification of Malaysian law as governing law and jurisdiction
1. Probationary Period: Terms of initial probationary period, if applicable
2. Performance Reviews: Structure and frequency of performance evaluations
3. Benefits and Allowances: Additional benefits beyond commission structure
4. Training and Development: Professional development and training requirements
5. Intellectual Property: IP rights assignment where relevant to the role
6. Remote Work Provisions: Terms for remote or hybrid working arrangements
7. International Travel: Terms for international business travel if required
8. Team Management: Additional responsibilities for managing other employees
1. Schedule 1: Commission Rates: Detailed breakdown of commission percentages and tiers
2. Schedule 2: Sales Territories: Definition of geographical or customer territories
3. Schedule 3: Product Lines: List of products/services eligible for commission
4. Schedule 4: Targets and KPIs: Specific performance targets and measurement criteria
5. Schedule 5: Bonus Structure: Additional incentive schemes beyond standard commission
6. Appendix A: Commission Calculation Examples: Practical examples of commission calculations
7. Appendix B: Reporting Templates: Standard forms for sales and commission reporting
Relevant legal definitions
Agreement
Base Salary
Commission
Commission Period
Confidential Information
Customer
Effective Date
Employer
Employee
Employment Act
Financial Year
Identity Card
Intellectual Property Rights
KPIs
Notice Period
Payment Date
Performance Targets
Probationary Period
Products
Qualified Sale
Revenue
Sales Territory
Services
Target Commission
Term
Termination Date
Working Hours
Workplace
Base Salary
Commission
Commission Period
Confidential Information
Customer
Effective Date
Employer
Employee
Employment Act
Financial Year
Identity Card
Intellectual Property Rights
KPIs
Notice Period
Payment Date
Performance Targets
Probationary Period
Products
Qualified Sale
Revenue
Sales Territory
Services
Target Commission
Term
Termination Date
Working Hours
Workplace
Clauses
Appointment
Term
Duties and Responsibilities
Commission Structure
Base Salary
Payment Terms
Performance Targets
Sales Territory
Working Hours
Leave Entitlement
Probation
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Data Protection
Termination
Notice Period
Post-Termination Obligations
Expenses
Training
Health and Safety
Representations and Warranties
Dispute Resolution
Governing Law
Force Majeure
Assignment
Severability
Entire Agreement
Amendment
Notices
Term
Duties and Responsibilities
Commission Structure
Base Salary
Payment Terms
Performance Targets
Sales Territory
Working Hours
Leave Entitlement
Probation
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Data Protection
Termination
Notice Period
Post-Termination Obligations
Expenses
Training
Health and Safety
Representations and Warranties
Dispute Resolution
Governing Law
Force Majeure
Assignment
Severability
Entire Agreement
Amendment
Notices
Relevant Industries
Retail
Real Estate
Insurance
Financial Services
Telecommunications
Automotive
Technology Sales
Pharmaceutical Sales
Manufacturing
Direct Sales
Professional Services
Media and Advertising
Travel and Tourism
Relevant Teams
Sales
Business Development
Account Management
Commercial
Retail Operations
Channel Management
Direct Sales
Field Sales
Inside Sales
Marketing
Customer Success
Revenue Operations
Relevant Roles
Sales Representative
Business Development Manager
Real Estate Agent
Insurance Agent
Financial Advisor
Sales Executive
Account Executive
Sales Manager
Territory Manager
Channel Sales Manager
Retail Sales Associate
Recruitment Consultant
Marketing Representative
Commercial Property Agent
Media Sales Executive
Travel Consultant
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