This Commission-Based Employment Offer Letter Agreement Template is designed for employers who wish to engage sales personnel, agents, or other commission-only staff. It provides a clear, legally sound framework for defining employment terms when compensation is determined solely by sales commissions.
What’s Included
- A fully editable Word / Google Docs agreement you can customize
- Key sections covering: position and duties; commission structure; payment schedule; expense responsibilities; confidentiality; termination; notice periods
- Spaces to insert your company name, candidate name, dates, and specific percentage or rate of commission
- Clause suggestions for cancellation, refunds, or adjustments affecting commissions
When to Use This Template
- Hiring a sales representative without a fixed base salary
- Engaging agents or independent contractors who are paid only when they produce sales or results
- Situations where the company wants to make all terms—commission, expenses, termination—explicit and enforceable
Benefits
- Helps avoid misunderstandings about pay, duties, or termination
- Protects both employer and employee by documenting responsibilities and procedures
- Ensures transparency around how commissions are calculated, paid, and adjusted
- Saves time compared to drafting an agreement from scratch
How to Customize
- Replace placeholders (company name, employee name, job title, commission % etc.) with your specific information.
- Review and adjust the commission rate and payment schedule to suit your business model.
- Insert any additional terms such as minimum sales targets, bonus incentives, or hybrid pay (base + commission) if needed.
- Tailor confidentiality, non-compete, or notice periods to comply with local laws.
Important Notes & Legal Considerations
- This template is not a substitute for legal advice. If you have doubts about employment laws in your jurisdiction, consult a lawyer.
- Be mindful of local labor regulations regarding minimum wage, overtime, or classification of commission-only staff.
- Ensure both parties sign the agreement and keep a copy.
