Document background
The Commission Only Agreement is essential for businesses operating in the Netherlands that wish to engage independent sales representatives or agents on a commission-based compensation structure. This document type is particularly relevant when companies want to expand their sales force without increasing fixed costs, while ensuring compliance with Dutch commercial law and EU directives. The agreement carefully delineates the independent contractor status of the agent, preventing misclassification under employment law, while providing comprehensive coverage of commission structures, territory rights, and performance expectations. It's designed to protect both the principal company's interests and the agent's rights, incorporating necessary provisions required by Dutch legislation, including the Commercial Agency Agreement Act and relevant sections of the Dutch Civil Code.
