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An Employee Commission Agreement sets out the terms on which an employer brings on a full-time or part-time employee who is to receive payment on a commission basis. In 2025, having a clearly defined commission structure is more critical than ever to ensure fairness and compliance with the latest employment standards.
If you’re an employer considering additional incentives to boost your employees’ performance, an Employee Commission Agreement is an excellent place to start. It not only motivates your team but also clarifies payment expectations and responsibilities from the outset.
Generally, under an Employee Commission Agreement, your employees earn a percentage of their sales as part of their overall remuneration package – a structure that aligns with current industry practices in 2025.
Recent updates in 2025 highlight the importance of regularly reviewing these agreements to reflect market trends and new legislative requirements. Ensuring your Employee Commission Agreement is up-to-date can help avoid disputes and aligns with the latest employment contract guidelines and fair pay regulations. Many employers benefit from our Contract Review and Redraft service, which tailors the agreement to your business’s unique needs.
When Do I Need An Employee Commission Agreement?
If you’re an employer looking to implement a commission payment structure for your team, it’s essential to have an Employee Commission Agreement drafted to outline clear, legally compliant terms and conditions.
Typically, an Employee Commission Agreement supplements the standard employment contracts provided during onboarding, ensuring that all details of commission-based earnings are explicitly set out.
The agreement details the commission structure alongside standard employment provisions such as remuneration, performance metrics, and termination processes.
What’s Included In An Employee Commission Agreement?
An Employee Commission Agreement typically includes a range of clauses that govern the relationship between your business and your employees. It should be tailored to meet the evolving requirements of your industry and ensure full transparency in 2025.
Some common provisions you can find in an Employee Commission Agreement include:
- Roles and duties
- Commission structure, including salary details and percentage calculations
- Calculation of commission and audit rights to verify that payments are accurate
- Termination clauses, including how commission accruals are handled when an employee departs
- Non-solicitation clauses – learn more about related restrictions on employee movements in our Non-Compete Agreements article
- Intellectual property protections relevant to proprietary processes
Need Help With An Employee Commission Agreement?
A well-drafted Employee Commission Agreement will safeguard the relationship between your business and your commission-based employees, ensuring clarity and fairness in compensation.
Having a lawyer draft your Employee Commission Agreement ensures that all contractual terms comply with current 2025 standards and are tailored to your business model. This approach is particularly valuable as employment law continues to evolve.
At Sprintlaw, we specialise in creating clear and comprehensive contracts that are easy to understand. For more on building a robust contractual framework, check out our resources on Service Agreements and Employment Contracts.
Feel free to get in touch with us for a free, no-obligations chat about your business and any questions you might have regarding an Employee Commission Agreement. You can reach us by calling 1800 730 617 or via email at team@sprintlaw.com.au. For further details, you may also explore our Employee Commission Agreement and Contract Review and Redraft services.
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