Sales Commission Agreement Definition
Generally, the sales employees receive their payment fully or by the commission which based on the amount of percentage they bring to the company. Therefore, a commission agreement is a crucial thing for workers before employment. The agreement in this sales commission contract usually includes the following elements:
- Contact information, parties involved, and other identification
- The percentage of the commission or payment they will receive for each closing
- The certain quotas that the person needs whether it is monthly or weekly for the sales volumes
- The duration of the employment
- Other terms such as whether an individual will be paid hourly or not
However, each company might apply a different standard in deciding the sales commissions. Certain factors determine this payment, such as:
- The standard applies in the industries
- The sales record from the previous records and positions
- The sales volumes that are successfully generated
- Another factor such as geography-dependent factors, for example, the living costs
However, remember that the sales commission is negotiated during the hiring process and before both parties agree with the commission agreement contract. Also, the amount can be modified by the company when the sales employees gain more experience.
Things To Do When An Individual Has A Dispute Over The Agreement
Even though the agreement has been made carefully, the dispute can arise in the future. Usually, the common dispute between the sales employees and the company is the low payment. They usually receive lower payments than the percentage stated in the agreement. The remedies for such dispute depends on the case whether this is accidental and discrepancies or intentional.
Generally, the damages award is given which is sufficient to compensate the individual for losing the earnings. In another case, this discord can be resolved with the help of the accounting department or human resources department. Another possible remedy can be a change in the company’s policy or rules.
Does An Individual Need To Use A Lawyer For Getting An Assistance?
In certain cases, when the problem is too complex and technical, hiring a lawyer is needed to get further assistance especially if it is related to the legal issue. In this case, the attorney can help you negotiate and review the agreement too. Even if you think you need to file a lawsuit, you can do this with the attorney’s assistance. The attorney will help you or assist you in the court.
You need the template for commission agreement if you are on the following condition:
- When a company is hiring a new sales employee and you want to agree whether the company will pay the employee by commission or in other terms with a list of obligations and rights to each party.
- When you are hired by a company and you need to ensure the obligation and rights before you start working in a company.
To help you make a better draft of this agreement, you can download the commission agreement sales template on this page for free!
Commission Agreement Sales Templates Sample