Commission Only Sales Rep Agreement Template for England and Wales

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Key Requirements PROMPT example:

Commission Only Sales Rep Agreement

"I need a Commission Only Sales Rep Agreement for a tech company hiring sales reps across Greater London, with a focus on software sales and strict performance targets; the agreement should include a 6-month non-compete clause and monthly commission payments."

Document background
The Commission Only Sales Rep Agreement is designed for businesses operating in England and Wales who wish to engage sales representatives on a commission-only basis. This agreement is particularly crucial when establishing clear parameters for commission-based sales relationships, ensuring compliance with commercial agency regulations and employment law. It defines commission structures, territories, targets, and reporting requirements while protecting both parties' interests. The document is essential for businesses expanding their sales force without fixed salary commitments, though careful consideration must be given to ensure compliance with minimum wage requirements even in commission-only arrangements.
Suggested Sections

1. Parties: Identifies the contracting parties and their details

2. Background: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Territory: Defines the sales representative's role and geographical area

5. Commission Structure: Details commission rates, calculation methods, and payment terms

6. Duties and Obligations: Lists responsibilities of both parties

7. Term and Termination: Specifies duration and termination provisions

8. Reporting Requirements: Details required sales reports and documentation

Optional Sections

1. Non-Compete Provisions: Restrictions on competing activities during and after the agreement term

2. Training Requirements: Mandatory training or certification requirements for the sales representative

3. Expenses: Terms for reimbursement of business-related expenses

4. Performance Targets: Specific sales targets or KPIs that the representative must achieve

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission structures and rates for different products or services

2. Territory Map: Visual representation and description of assigned sales territory

3. Product List: Comprehensive list of products/services the representative is authorized to sell

4. Reporting Templates: Standard forms and templates for sales reporting and documentation

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

Clauses
Industries

Commercial Agents (Council Directive) Regulations 1993: Key legislation for commercial agents covering commission rights, termination notices, and compensation/indemnity upon termination. Cannot be contracted out of if applicable.

National Minimum Wage Act 1998: Ensures that even commission-only workers must effectively receive minimum wage for hours worked. Commission structure must comply with this requirement.

Employment Rights Act 1996: Defines employment status (worker vs. self-employed), requirements for written terms and conditions, and protection against unfair dismissal for employees.

Working Time Regulations 1998: Governs maximum weekly working hours, rest breaks, and holiday entitlement if the rep is classified as a worker.

Equality Act 2010: Provides protection against discrimination, applicable regardless of employment status.

Consumer Protection from Unfair Trading Regulations 2008: Regulates sales practices and representations made to customers.

Data Protection Act 2018 and UK GDPR: Governs the handling of customer and personal data, including data protection obligations.

Competition Act 1998: Applicable to territorial restrictions and non-compete clauses in the agreement.

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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