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.

If you’re an employer and are considering incentives for your employees to improve their performance, an Employee Commission Agreement is a good place to start.

Generally, under an Employee Commission Agreement, your employees will receive a percentage of their sales as a part of their wages.

When Do I Need An Employee Commission Agreement?

If you’re an employer looking to implement a commission payment structure for your employees, you should consider getting an Employee Commission Agreement drafted. 

Generally, an Employee Commission Agreement supplements the standard employment contracts you provide to an employee during onboarding. 

The terms of the agreement will outline the structure and use of commission payments, alongside the standard provisions included within your business’ employment contracts. 

What’s Included In An Employee Commission Agreement? 

An Employee Commission Agreement will include a range of clauses to the relationship between your business and your employees.

Some common provisions you can find in an Employee Commission Agreement include:

  • Roles and duties
  • Intellectual Property Protections
  • Termination 
  • Salary (including commission structure and terms)
  • Non-solicitation 
  • Calculation of commission 
  • Audit rights to ensure commissions are appropriately paid 

Need Help With An Employee Commission Agreement?

A well-drafted Employee Commission will protect the relationships between your business and those you decide to bring on as employees. 

Having a lawyer draft your Employee Commission Agreement will provide clear terms for bringing on an employee to be a part of a commission payment structure. 

At Sprintlaw, we focus on drafting easy to understand and comprehensive contracts for many online businesses. 

Feel free to get in touch with us to have a free, no-obligations chat about your business and your questions about an Employee Commission Agreement  You can reach us by giving us a call on 1800 730 617 or via email at

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