The Commission Based Employment Contract is essential for businesses operating in South Africa that employ sales professionals or other personnel compensated through commission structures. This agreement is designed to comply with South African employment legislation, including the Basic Conditions of Employment Act, Labour Relations Act, and relevant sectoral determinations. It is particularly useful for companies in retail, financial services, real estate, and other sales-driven industries. The contract outlines the commission calculation methodology, payment terms, performance expectations, and basic conditions of employment while protecting both employer and employee interests. It should be used when hiring new commission-based employees or converting existing employees to commission-based compensation structures, ensuring clear understanding of earnings potential and performance requirements while maintaining compliance with South African labor laws.
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1. Parties: Identification and details of the employer and employee
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Appointment and Duration: Terms of employment, commencement date, and nature of the employment relationship
5. Position and Duties: Job title, role description, key responsibilities, and reporting lines
6. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions
7. Basic Salary and Benefits: Any guaranteed basic salary, benefits, and other fixed remuneration components
8. Working Hours and Location: Standard working hours, work location, and flexibility arrangements
9. Leave Entitlements: Annual leave, sick leave, family responsibility leave, and other leave provisions
10. Performance Expectations: Sales targets, KPIs, and performance review processes
11. Confidentiality: Protection of company information and trade secrets
12. Restraint of Trade: Non-compete and non-solicitation provisions
13. Termination: Notice periods, grounds for termination, and termination procedures
14. General Provisions: Standard contractual clauses including governing law, entire agreement, and amendments
1. Probationary Period: Terms of initial probation period - include when hiring new employees without industry experience
2. Company Property: Provisions regarding company equipment, vehicles, or devices - include when providing company assets
3. Travel Requirements: Travel expectations and compensation - include for roles requiring regular travel
4. Training and Development: Professional development opportunities and requirements - include when offering structured training programs
5. Team Management: Responsibilities for team leadership - include for senior sales positions
6. International Travel: International travel requirements and allowances - include for roles with global responsibilities
7. Industry-Specific Requirements: Specific regulations or compliance requirements - include based on industry sector
8. Remote Working: Terms and conditions for remote work arrangements - include when offering flexible working options
1. Schedule A - Commission Structure Details: Detailed breakdown of commission rates, tiers, and calculation methodologies
2. Schedule B - Sales Targets: Specific sales targets, quotas, and measurement periods
3. Schedule C - Benefits Schedule: Detailed description of additional benefits, allowances, and incentives
4. Schedule D - Territory/Client Assignment: Definition of sales territory or allocated client base
5. Appendix 1 - Key Performance Indicators: Detailed KPIs and measurement criteria
6. Appendix 2 - Expense Policy: Guidelines for claiming business-related expenses
7. Appendix 3 - Company Policies: Reference to relevant company policies affecting the employment relationship
Relevant legal definitions
Agreement
Applicable Laws
Base Salary
Business Day
Commission
Commission Period
Confidential Information
Effective Date
Employee
Employer
Financial Year
Gross Sales
Intellectual Property
KPIs
Net Sales
Notice Period
Parent Company
Performance Targets
Probationary Period
Products
Qualified Sale
Quarter
Sales Territory
Services
Standard Working Hours
Targets
Term
Termination Date
Trade Secrets
Working Day
Year
Commission Rate
Client
Customer
Pipeline
Booking
Closed Deal
Revenue
Sales Cycle
Commission Payment Date
Performance Review
Quota
Threshold
Bonus
Clawback
Incentive
Override Commission
Team Quota
Territory
Draw
Rolling Average
Applicable Laws
Base Salary
Business Day
Commission
Commission Period
Confidential Information
Effective Date
Employee
Employer
Financial Year
Gross Sales
Intellectual Property
KPIs
Net Sales
Notice Period
Parent Company
Performance Targets
Probationary Period
Products
Qualified Sale
Quarter
Sales Territory
Services
Standard Working Hours
Targets
Term
Termination Date
Trade Secrets
Working Day
Year
Commission Rate
Client
Customer
Pipeline
Booking
Closed Deal
Revenue
Sales Cycle
Commission Payment Date
Performance Review
Quota
Threshold
Bonus
Clawback
Incentive
Override Commission
Team Quota
Territory
Draw
Rolling Average
Clauses
Appointment
Duration
Probation
Duties and Responsibilities
Commission Structure
Base Remuneration
Working Hours
Place of Work
Leave Entitlements
Performance Requirements
Targets and Quotas
Commission Payment Terms
Bonus Arrangements
Benefits
Expenses
Reporting Requirements
Territory Assignment
Client Management
Training and Development
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Data Protection
Company Property
Health and Safety
Disciplinary Procedures
Termination
Notice Periods
Garden Leave
Post-Termination Obligations
Dispute Resolution
Governing Law
Amendments
Entire Agreement
Severability
Force Majeure
Notices
Assignment
Waiver
Duration
Probation
Duties and Responsibilities
Commission Structure
Base Remuneration
Working Hours
Place of Work
Leave Entitlements
Performance Requirements
Targets and Quotas
Commission Payment Terms
Bonus Arrangements
Benefits
Expenses
Reporting Requirements
Territory Assignment
Client Management
Training and Development
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Data Protection
Company Property
Health and Safety
Disciplinary Procedures
Termination
Notice Periods
Garden Leave
Post-Termination Obligations
Dispute Resolution
Governing Law
Amendments
Entire Agreement
Severability
Force Majeure
Notices
Assignment
Waiver
Relevant Industries
Retail
Real Estate
Insurance
Financial Services
Automotive
Technology Sales
Telecommunications
Manufacturing
Pharmaceutical Sales
Media and Advertising
Travel and Tourism
Professional Services
Direct Sales
Consumer Goods
Relevant Teams
Sales
Business Development
Account Management
Commercial
Retail Operations
Channel Management
Direct Sales
Field Sales
Inside Sales
Financial Advisory
Real Estate
Insurance
Business Solutions
Enterprise Sales
Relevant Roles
Sales Representative
Business Development Manager
Real Estate Agent
Insurance Broker
Sales Executive
Account Executive
Commission-based Consultant
Sales Manager
Territory Manager
Channel Sales Manager
Direct Sales Representative
Retail Sales Associate
Financial Advisor
Sales Director
Commercial Sales Representative
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