Commission Based Employment Contract for Pakistan

Commission Based Employment Contract Template for Pakistan

This document establishes a commission-based employment relationship under Pakistani law, detailing the terms and conditions of employment where compensation is primarily or partially based on sales performance or similar measurable outcomes. The contract complies with Pakistani employment legislation, including the Industrial and Commercial Employment Ordinance and relevant tax laws, while specifying commission structures, performance metrics, payment terms, and employment conditions. It includes provisions for target setting, commission calculations, payment schedules, and essential employment terms while ensuring alignment with local labor laws and social security requirements.

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What is a Commission Based Employment Contract?

This Commission Based Employment Contract is designed for use in Pakistan when establishing formal employment relationships where compensation is tied to performance-based commission structures. The document is essential for businesses operating in sales-driven environments and complies with Pakistani employment law, including the Industrial and Commercial Employment Ordinance, tax regulations, and social security requirements. It should be used when hiring employees whose compensation will be partially or fully based on commission earnings, such as sales representatives or business development professionals. The contract includes comprehensive details about commission calculations, performance targets, payment schedules, and standard employment terms, while ensuring protection for both employer and employee under Pakistani jurisdiction. It's particularly relevant for organizations looking to implement transparent and legally-compliant commission-based compensation systems.

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

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

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including commission-specific terminology

4. Appointment and Term: Details of the position, employment status, and duration of the agreement

5. Duties and Responsibilities: Specific role requirements, targets, and performance expectations

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

7. Payment Terms: Timeline and method of commission payments, including any base salary if applicable

8. Performance Metrics: Key performance indicators and sales targets that affect commission earnings

9. Working Hours and Location: Expected work schedule and place of work, including any flexibility provisions

10. Confidentiality: Protection of company information and trade secrets

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

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

13. Governing Law: Specification of Pakistani law as governing law and relevant jurisdiction

14. Signatures: Execution block for both parties

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

1. Probation Period: Details of initial probation period if applicable for new employees

2. Travel Requirements: Include when role requires regular travel and expense reimbursement

3. Team Management: Include when employee will have supervisory responsibilities

4. Training and Development: Include when specific training or certification requirements exist

5. Benefits Package: Include when additional benefits beyond standard statutory requirements are offered

6. Dispute Resolution: Include when specific arbitration or mediation procedures are preferred

7. Intellectual Property: Include when employee may create IP during employment

8. Remote Work Provisions: Include when role allows for remote working arrangements

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

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

2. Schedule B - Sales Targets: Quarterly/annual sales targets and corresponding commission tiers

3. Schedule C - Territory Assignment: Defined sales territory or customer accounts if applicable

4. Schedule D - Bonus Structure: Additional performance-based incentives and criteria

5. Appendix 1 - Reporting Requirements: Templates and procedures for sales reporting

6. Appendix 2 - Expense Policy: Guidelines for business expense claims and reimbursement

7. Appendix 3 - Code of Conduct: Company policies and ethical guidelines

8. Appendix 4 - Benefits Summary: Overview of all applicable benefits and eligibility criteria

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

Pakistan

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Real Estate

Insurance

Banking and Financial Services

Telecommunications

Automobile Sales

Pharmaceutical Sales

Technology and Software

Manufacturing

Direct Sales

Fashion and Apparel

Consumer Goods

Media and Advertising

Tourism and Travel

Professional Services

Relevant Teams

Sales

Business Development

Commercial

Account Management

Marketing

Client Relations

Product Management

Channel Management

Customer Success

Revenue

Business Strategy

Market Development

Direct Sales

Retail Operations

Distribution

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Agent

Recruitment Consultant

Marketing Executive

Account Executive

Sales Manager

Commission-based Consultant

Financial Advisor

Commercial Manager

Sales Director

Territory Manager

Channel Partner Manager

Business Development Executive

Sales Coordinator

Commission-based Trainer

Product Specialist

Relationship Manager

Direct Sales Representative

Industries
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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