Independent Contractor Sales Commission Agreement for Philippines

Independent Contractor Sales Commission Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes and regulates the relationship between a company and an independent sales contractor. This document outlines the terms of engagement, commission structure, sales territories, and performance expectations while ensuring compliance with Philippine labor laws that distinguish independent contractors from employees. It includes provisions for commission calculations, payment terms, confidentiality, non-competition, and clearly defines the contractor's independent status to avoid misclassification issues under Philippine employment regulations.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Independent Contractor Sales Commission Agreement?

The Independent Contractor Sales Commission Agreement is essential for businesses operating in the Philippines that engage external sales representatives without creating an employer-employee relationship. This document is particularly relevant in situations where companies want to expand their sales reach without increasing their direct employee headcount. It comprehensively addresses commission structures, performance expectations, and territorial rights while ensuring compliance with Philippine laws, including the Civil Code, Labor Code, and relevant tax regulations. The agreement is structured to clearly establish the independent nature of the relationship, protecting both parties from potential misclassification issues while providing a framework for successful sales collaboration. It includes detailed provisions for commission calculations, payment terms, performance metrics, and necessary compliance requirements specific to the Philippine business environment.

What sections should be included in a Independent Contractor Sales Commission Agreement?

1. Parties: Identifies the contracting parties - the company and the independent contractor

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the contractor's appointment and confirms independent contractor status

5. Territory and Products: Defines the geographical area and products/services the contractor is authorized to sell

6. Commission Structure: Details the commission rates and calculation methods

7. Payment Terms: Specifies when and how commissions will be paid, including any conditions precedent

8. Contractor's Obligations: Lists the contractor's duties, responsibilities, and performance standards

9. Company's Obligations: Outlines the company's responsibilities to the contractor

10. Term and Termination: Specifies the duration of the agreement and termination provisions

11. Confidentiality: Protects confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restricts competitive activities during and after the agreement

13. Independent Contractor Status: Explicitly confirms the contractor's independent status and tax responsibilities

14. Intellectual Property: Addresses ownership and usage of intellectual property

15. Indemnification: Sets out mutual indemnification obligations

16. General Provisions: Contains standard boilerplate clauses including governing law, notices, and amendments

What sections are optional to include in a Independent Contractor Sales Commission Agreement?

1. Training and Support: Include when the company provides specific training or support systems

2. Marketing and Advertising: Include when the contractor has specific marketing responsibilities or limitations

3. Insurance Requirements: Include when specific insurance coverage is required from the contractor

4. Performance Targets: Include when minimum sales targets or performance metrics apply

5. Expense Reimbursement: Include when certain expenses are reimbursable by the company

6. Data Protection: Include when the contractor will handle personal data subject to privacy laws

7. Dispute Resolution: Include when specific arbitration or mediation procedures are required

8. Sub-contractors: Include when the contractor may engage sub-contractors

What schedules should be included in a Independent Contractor Sales Commission Agreement?

1. Schedule A - Commission Rates: Detailed breakdown of commission rates for different products/services

2. Schedule B - Territory Description: Detailed description of the assigned sales territory including maps if applicable

3. Schedule C - Product List: Comprehensive list of products/services the contractor is authorized to sell

4. Schedule D - Sales Targets: Specific sales targets and any associated bonus structures

5. Schedule E - Reporting Requirements: Templates and procedures for sales reporting

6. Schedule F - Company Policies: Relevant company policies the contractor must comply with

7. Appendix 1 - Commission Calculation Examples: Examples showing how commissions are calculated in various scenarios

8. Appendix 2 - Required Documentation: Forms and documents required for commission claims and payment

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

Jurisdiction

Philippines

Publisher

Genie AI

Sector

Sales

Cost

Free to use

Find the exact document you need

Commission Based Employment Agreement

A Philippine law-compliant employment agreement for commission-based workers, detailing compensation structure and employment terms.

Download

Salesperson Contract Commission Only

Philippine-compliant commission-only salesperson contract template outlining sales terms, compensation structure, and statutory benefits under Philippine law.

Download

Commission Only Agreement

A Philippine law-governed agreement establishing terms for commission-based sales representation, defining commission structure and performance requirements.

Download

Draw Against Commission Agreement

A Philippine-law governed agreement establishing terms for advance payments against future commissions between a company and its sales representatives.

Download

Salesperson Employment Contract

Philippine-compliant employment contract for sales professionals, covering compensation, targets, and territory assignments under local labor laws.

Download

Commercial Commission Contract

A Philippine law-governed agreement establishing commission-based sales or service arrangements between a principal and an agent, defining payment terms and responsibilities.

Download

Sales Commission Contract

A Philippine law-governed agreement establishing commission-based sales terms between a company and sales representative, including compensation structure and mutual obligations.

Download

Referral Agreement And Commission Agreement

A Philippine law-governed agreement establishing terms for business referrals and associated commission payments between parties.

Download

Commission Only Contract

A Philippine law-governed agreement establishing a commission-based compensation relationship between a company and sales representative, with no base salary.

Download

Benefits And Commission Contract

A Philippine law-governed agreement establishing commission-based employment terms, compensation structure, and comprehensive benefits package.

Download

Split Sales Commission Agreement

A Philippine law-governed agreement establishing terms for sharing sales commissions between multiple parties, including split percentages, payment terms, and compliance requirements.

Download

Lead Generation Commission Agreement

A Philippine-law governed agreement establishing terms between a company and lead generator for customer referrals and associated commission payments.

Download

Intermediary Commission Agreement

A Philippine law-governed agreement establishing terms and commission structure between a principal and intermediary for business representation services.

Download

Commission Based Consulting Agreement

A Philippine-law governed agreement establishing a commission-based consulting relationship, defining services, compensation, and independent contractor status.

Download

Joint Venture Commission Agreement

A Philippine law-governed agreement establishing a joint venture with commission-based arrangements between collaborating parties.

Download

Commission Guarantee Agreement

A Philippine law-governed agreement where a guarantor ensures payment of specified commission amounts to a beneficiary under defined conditions.

Download

Independent Sales Rep Contract

A Philippine law-governed contract establishing terms between a company and an independent sales representative, defining commission structures and independent contractor status.

Download

Commission Contract Agreement

A Philippine law-governed agreement establishing terms and conditions for commission-based business relationships between principals and agents.

Download

Independent Contractor Sales Commission Agreement

A Philippine law-governed agreement establishing terms and commission structure between a company and independent sales contractor.

Download

Commission Share Agreement

A Philippine law-governed agreement establishing terms and conditions for commission-based business relationships, including payment structures and mutual obligations.

Download

Sales Representative Contract

A Philippine law-governed agreement establishing terms and conditions between a company and its sales representative, including commission structure, duties, and territorial rights.

Download

Exclusive Agency Agreement Commission

A Philippine law-governed agreement establishing an exclusive agency relationship with defined commission structures and territorial rights.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now