Commission Agreement For Independent Contractor Template for New Zealand

The Commission Agreement For Independent Contractor serves as a critical legal framework for businesses operating in New Zealand that engage independent contractors on a commission basis. This document is essential when companies wish to establish clear, legally-compliant relationships with contractors who are compensated based on sales performance or specific achieved outcomes. It addresses key requirements under New Zealand law, including tax obligations, GST considerations, and the distinction from employment relationships. The agreement is particularly valuable for businesses in sales-driven industries but can be adapted for any sector where performance-based contractor compensation is appropriate. It includes comprehensive provisions for commission structures, performance metrics, territory assignments, and compliance requirements while maintaining the contractor's independence.

1. Parties: Identifies and provides full details of the principal company and the contractor

2. Background: Sets out the context of the agreement, including the contractor's business and the principal's requirements

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment and Status: Confirms the contractor's appointment and explicitly establishes independent contractor status

5. Services: Detailed description of services to be provided by the contractor

6. Commission Structure: Defines base commission rates, calculation methods, and payment terms

7. Performance Targets: Establishes minimum performance requirements and sales targets

8. Payment Terms: Details payment frequency, method, and handling of expenses

9. Term and Termination: Specifies agreement duration, renewal terms, and termination conditions

10. Contractor's Obligations: Lists specific duties, responsibilities, and standards of service

11. Principal's Obligations: Outlines the principal's responsibilities and support provided

12. Intellectual Property: Addresses ownership and use of intellectual property

13. Confidentiality: Defines confidential information and protection requirements

14. Non-Compete and Non-Solicitation: Establishes restrictions on competitive activities

15. Insurance and Liability: Specifies insurance requirements and liability limitations

16. Dispute Resolution: Outlines process for resolving disagreements

17. General Provisions: Contains standard boilerplate clauses including governing law