Contract For Commission Based Employment for the Netherlands

Contract For Commission Based Employment Template for Netherlands

This document is a comprehensive commission-based employment contract governed by Dutch law, designed to establish the terms and conditions of employment where compensation includes a commission component. It addresses all essential elements required under Dutch employment legislation, including minimum wage guarantees, working hours, and statutory benefits, while detailing the commission structure, calculation methods, and payment terms. The contract ensures compliance with Dutch labor laws including the Dutch Civil Code (Burgerlijk Wetboek) and the Minimum Wage and Minimum Holiday Allowance Act, while providing flexibility for various commission-based roles across different industries.

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What is a Contract For Commission Based Employment?

The Contract For Commission Based Employment is essential for organizations operating in the Netherlands that wish to employ individuals on a commission-based compensation structure. This document is typically used when hiring sales professionals, real estate agents, or other roles where performance-based pay forms a significant part of the compensation package. It ensures compliance with Dutch employment law while protecting both employer and employee interests through clear commission structures, performance metrics, and payment terms. The contract includes mandatory provisions required by Dutch labor law, such as minimum wage guarantees and holiday allowance, while allowing flexibility in commission structures. It's particularly important for businesses seeking to implement performance-based compensation models while maintaining compliance with Dutch employment regulations and social security requirements.

What sections should be included in a Contract For Commission Based Employment?

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. Position and Duties: Description of the employee's role, responsibilities, and reporting structure

5. Duration and Nature of Employment: Terms regarding employment duration (fixed-term/indefinite) and nature of the position

6. Commission Structure: Detailed explanation of how commissions are calculated, earned, and paid

7. Base Salary and Benefits: Any fixed compensation and standard benefits package details

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

9. Holiday Entitlement: Vacation days and holiday allowance calculations

10. Sick Leave and Pay: Provisions for illness and impact on commission earnings

11. Confidentiality: Obligations regarding company and client information

12. Non-Competition and Non-Solicitation: Post-employment restrictions and client protection clauses

13. Termination: Conditions and procedures for ending the employment relationship

14. Governing Law: Confirmation of Dutch law application and jurisdiction

15. Signatures: Execution section for both parties

What sections are optional to include in a Contract For Commission Based Employment?

1. Company Car: Include when a company vehicle is provided as part of the compensation package

2. International Travel: Include when the role requires regular international travel and specific arrangements

3. Team Management: Include when the employee has supervisory responsibilities

4. Training and Development: Include when specific training requirements or development programs are part of the role

5. Intellectual Property: Include when the role involves creation of IP or creative work

6. Remote Working: Include when regular remote work is part of the arrangement

7. Performance Targets: Include when specific KPIs or targets are tied to commission structure

8. Expense Policy: Include when role requires regular business expense claims

What schedules should be included in a Contract For Commission Based Employment?

1. Schedule 1 - Commission Calculation Method: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule 2 - Benefits Package: Comprehensive list of benefits and eligibility criteria

3. Schedule 3 - Territory/Client List: Definition of sales territory or assigned client accounts

4. Schedule 4 - Performance Metrics: Detailed KPIs and performance measurement criteria

5. Schedule 5 - Company Policies: Reference to relevant company policies affecting commission-based employees

6. Appendix A - Commission Payment Examples: Practical examples of commission calculations in different scenarios

7. Appendix B - Expense Guidelines: Detailed rules for business expense claims and reimbursement

8. Appendix C - Reporting Templates: Standard forms for commission reporting and tracking

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Real Estate

Financial Services

Insurance

Telecommunications

Technology Sales

Automotive

Pharmaceutical Sales

Advertising and Media

Manufacturing

Professional Services

Recruitment

Travel and Tourism

Consumer Goods

Industrial Sales

Relevant Teams

Sales

Business Development

Commercial

Account Management

Channel Partners

Revenue

Business Solutions

Client Services

Financial Advisory

Real Estate

Insurance

Retail Operations

Direct Sales

Inside Sales

Field Sales

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Broker

Recruitment Consultant

Account Executive

Sales Manager

Territory Manager

Commission-based Consultant

Financial Advisor

Mortgage Broker

Sales Director

Commercial Manager

Business Development Director

Channel Sales Manager

Industries
Dutch Civil Code (Burgerlijk Wetboek) - Book 7, Title 10: Primary legislation governing employment relationships in the Netherlands, including basic contract requirements, rights, and obligations of both employer and employee
Minimum Wage and Minimum Holiday Allowance Act (Wet minimumloon en minimumvakantiebijslag): Ensures that commission-based employees still receive at least the statutory minimum wage and holiday allowance
Working Hours Act (Arbeidstijdenwet): Regulates maximum working hours, rest periods, and overtime rules that must be observed even in commission-based employment
Work and Care Act (Wet arbeid en zorg): Covers various types of leave, including sick leave, maternity leave, and how these affect commission-based pay
Flexible Working Act (Wet flexibel werken): Relevant for arranging working hours and workplace flexibility in commission-based arrangements
Remuneration of Sales Representatives Act (Handelsvertegenwoordigerswet): Specific provisions regarding commission structures, calculation methods, and payment terms for sales representatives
Dutch Works Councils Act (Wet op de ondernemingsraden): Relevant if the company has a works council, as they may have say in commission structures and employment conditions
GDPR/AVG (Algemene verordening gegevensbescherming): Relevant for handling personal data and commission calculations/records
Wages and Salaries Tax Act (Wet op de loonbelasting): Governs taxation of commission-based income and employer obligations regarding tax withholding
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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