Commission Based Employment Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Commission Based Employment Contract

"I need a Commission Based Employment Contract for a senior pharmaceutical sales representative in Saudi Arabia, with a 70-30 commission-to-base-salary split, extensive territory coverage across the Eastern Province, and specific provisions for maintaining medical licenses starting March 2025."

Document background
The Commission Based Employment Contract is essential for businesses operating in Saudi Arabia that compensate employees through commission-based structures. This document is particularly relevant when hiring sales professionals, business development executives, and other roles where compensation is tied to performance metrics or sales achievements. The contract ensures compliance with Saudi Labor Law while establishing clear terms for commission calculations, payment schedules, and performance expectations. It includes mandatory provisions required by Saudi authorities, such as working hours, leave entitlements, and termination procedures, while also addressing specific commission-related matters such as territory assignments, target setting, and commission payment terms. This type of agreement is commonly used in sectors such as real estate, retail, financial services, and other sales-driven industries where performance-based compensation is standard practice.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

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

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

4. Appointment and Duration: Terms of employment, position title, and whether the contract is fixed-term or indefinite

5. Duties and Responsibilities: Detailed description of the employee's role, targets, and performance expectations

6. Commission Structure: Detailed explanation of commission calculations, rates, and qualifying sales or transactions

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

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

9. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

10. Statutory Benefits: Mandatory benefits under Saudi Labor Law including leave entitlements and social insurance

11. Confidentiality: Protection of company confidential information and trade secrets

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

13. Termination: Grounds and procedures for contract termination by either party

14. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures

Optional Sections

1. Additional Benefits: Optional benefits beyond statutory requirements, used when offering enhanced package

2. Training and Development: Specific provisions for employee training and skill development, included when relevant to role

3. Travel Requirements: Terms related to business travel and associated expenses, included for roles requiring travel

4. Territory Assignment: Definition of geographic or customer territory, included for field sales roles

5. Team Management: Responsibilities for managing other employees, included for leadership roles

6. Product Portfolio: Specific products or services the employee is authorized to sell, included for specialized sales roles

7. Clawback Provisions: Terms for recovering commission payments in specific circumstances, included for high-value sales

8. Remote Working: Terms for remote work arrangements, included when applicable

Suggested Schedules

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

2. Schedule 2: Performance Metrics: Detailed KPIs and calculation methodologies for performance assessment

3. Schedule 3: Territory Map: Geographic boundaries or customer assignments if applicable

4. Schedule 4: Product List: List of products/services the employee is authorized to sell

5. Schedule 5: Bonus Structure: Additional incentive schemes beyond basic commission

6. Appendix A: Company Policies: Relevant company policies affecting commission-based employees

7. Appendix B: Reporting Templates: Standard forms for sales reporting and commission calculations

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

Relevant legal definitions
Clauses
Relevant Industries

Retail

Real Estate

Financial Services

Insurance

Telecommunications

Technology Sales

Automotive

Industrial Equipment

Medical Devices

Pharmaceutical Sales

Professional Services

Advertising and Media

Travel and Tourism

Construction Materials

Energy Solutions

Relevant Teams

Sales

Business Development

Commercial

Revenue

Account Management

Channel Partners

Direct Sales

Retail Operations

Field Sales

Inside Sales

Corporate Sales

Enterprise Sales

Commission Operations

Sales Operations

Sales Support

Relevant Roles

Sales Representative

Business Development Manager

Real Estate Agent

Insurance Broker

Recruitment Consultant

Financial Advisor

Account Executive

Sales Manager

Territory Manager

Commission-based Consultant

Property Consultant

Media Sales Executive

Pharmaceutical Sales Representative

Advertising Sales Executive

Commercial Leasing Agent

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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