Commission Based Job Offer Letter Template for England and Wales

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Key Requirements PROMPT example:

Commission Based Job Offer Letter

"I need a Commission Based Job Offer Letter for a senior sales position in our fintech company, with a 60/40 commission-to-base-salary split and quarterly performance targets, starting March 2025. The role will cover the UK market and include specific clawback provisions."

Document background
The Commission Based Job Offer Letter is a crucial document used when offering employment positions where compensation is significantly tied to performance-based commission. This document, governed by the laws of England and Wales, provides clarity on commission structures, targets, and payment terms while ensuring compliance with UK employment legislation. It's particularly important for roles in sales, real estate, and financial services where commission forms a substantial part of the compensation package. The letter serves as the foundation for the employment relationship, outlining both parties' obligations and expectations.
Suggested Sections

1. Opening Details: Date, employer details, employee details

2. Job Role: Position title, responsibilities, reporting structure

3. Commission Structure: Detailed explanation of commission calculation and payment terms

4. Base Salary: If applicable, details of basic pay

5. Start Date: Commencement date of employment

6. Working Hours: Expected working hours and flexibility requirements

7. Notice Period: Required notice for termination from either party

Optional Sections

1. Probation Period: Terms of probationary period if applicable

2. Benefits Package: Additional benefits beyond commission structure

3. Training Requirements: Any mandatory training or qualifications needed

4. Territory/Client Allocation: If sales role, defined territory or client base

Suggested Schedules

1. Commission Calculator: Detailed breakdown of commission calculation methods

2. Target Structure: Details of sales targets and corresponding commission rates

3. Benefits Summary: Detailed overview of complete benefits package

4. Job Description: Detailed role responsibilities and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation covering basic employment rights, requirement for written statement of employment particulars, and minimum notice periods for employment contracts.

National Minimum Wage Act 1998: Legislation ensuring commission-based payment structures comply with minimum wage requirements and maintain proper payment records.

Working Time Regulations 1998: Regulations governing working hours limits, rest breaks, holiday entitlements, and holiday pay calculations including commission considerations.

Equality Act 2010: Legislation ensuring non-discriminatory terms, fair commission structures, and equal treatment provisions in employment contracts.

GDPR and Data Protection Act 2018: Laws governing personal data handling, privacy notices, and data retention policies in employment relationships.

Agency Workers Regulations 2010: Regulations protecting agency workers' rights and ensuring equal treatment provisions, if applicable to the employment arrangement.

Employment Protection (Fixed-term Employees) Regulations 2002: Legislation ensuring compliance with fixed-term worker rights and protections in fixed-term employment contracts.

Income Tax and National Insurance legislation: Laws governing tax treatment of commission payments and PAYE obligations in employment relationships.

Employment Protection (Consolidation) Act 1978: Legislation providing basic employment protections and rights in the workplace.

Terms and Conditions of Employment Regulations: Regulations specifying mandatory information that must be provided to employees in their employment documentation.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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