This Commission Based Employment Contract is essential for businesses operating in Nigeria that employ sales professionals or other workers compensated primarily through commission-based arrangements. The document complies with Nigerian employment legislation, including the Labour Act and National Minimum Wage Act 2019, while providing a comprehensive framework for commission-based employment relationships. It is particularly useful for organizations seeking to establish clear performance metrics, commission structures, and payment terms while ensuring legal compliance. The contract addresses key aspects such as territory assignments, sales targets, commission calculations, and statutory requirements, making it suitable for various sales-oriented roles across different industries in the Nigerian market.

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment arrangement and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Sales', 'Targets', etc.

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, responsibilities, and performance expectations

6. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

7. Base Salary and Benefits: Any base salary component and statutory benefits as per Nigerian law

8. Working Hours and Location: Expected working hours, location, and any flexibility arrangements

9. Targets and Performance Metrics: Specific sales or performance targets that affect commission earnings

10. Payment Terms: Payment schedule, method, and conditions for commission payments

11. Statutory Deductions: Details of tax, pension, and other mandatory deductions

12. Termination: Conditions and procedures for contract termination by either party

13. Confidentiality: Protection of company information and trade secrets

14. Non-Competition: Restrictions on working with competitors during and after employment

15. Governing Law: Specification of Nigerian law as governing law and jurisdiction