A Commission Agreement is a contract between an employer and an employee for work paid on commission. A Commission Agreement outlines the employment terms and compensation so both employer and employee know what to expect going forward, whether that is by the hour, on salary, or on commission.
The Agreement is helpful for both employer and employee as it outlines the details of the work relationship. Terms include a definition of the expected employment, and commission percentages and salary, if applicable. Employees benefit from formal terms if there are any misunderstanding with the employer. An employer in turn can protect their business with confidentiality and non-compete clauses in the Commission Agreement.
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