Commission Based Job Offer Letter Template for Singapore

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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 representative position in Singapore, with a 70/30 commission structure and quarterly performance reviews, starting March 2025, including non-compete clauses for the telecommunications industry."

Document background
The Commission Based Job Offer Letter is a crucial document in Singapore's employment landscape, particularly for roles where compensation is tied to performance or sales outcomes. This document is designed to comply with Singapore's Employment Act and related legislation while providing clear terms of employment. It should be used when hiring employees whose compensation will be primarily or partially based on commission earnings. The letter typically includes detailed commission structures, performance expectations, payment terms, and other essential employment conditions. A well-drafted Commission Based Job Offer Letter helps prevent future disputes by clearly establishing the employment relationship and compensation framework.
Suggested Sections

1. Company Information: Official company name, registration number, and registered address

2. Employee Information: Full name, NRIC/passport number, and contact details of the employee

3. Position and Role: Job title, role description, reporting structure, and key responsibilities

4. Commission Structure: Detailed explanation of commission rates, calculation methodology, and payment terms

5. Performance Metrics: Specific targets, KPIs, and performance expectations that commission payments will be based on

6. Payment Terms: Commission payment frequency, calculation periods, and payment methods

7. Employment Terms: Start date, working hours (if applicable), and basic employment conditions

Optional Sections

1. Base Salary Component: Details of any fixed salary component, if the role includes a hybrid compensation structure

2. Benefits Package: Additional benefits such as medical insurance, leave entitlements, and other perks

3. Probation Terms: Duration and conditions of probation period, if applicable

4. Non-Compete Clause: Restrictions on working with competitors during and after employment

5. Confidentiality Terms: Provisions regarding handling of confidential information and trade secrets

Suggested Schedules

1. Schedule A - Commission Rate Card: Detailed breakdown of commission rates for different products/services/targets

2. Schedule B - Performance Targets: Specific metrics, targets, and KPIs that need to be achieved for commission eligibility

3. Schedule C - Territory/Account Assignment: Defined sales territory or customer accounts allocation, if applicable

4. Schedule D - Benefits Schedule: Detailed breakdown of additional benefits and eligibility criteria

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

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering basic terms and conditions, salary payment rules, leave entitlements, and working hours provisions for commission-based employees

Central Provident Fund (CPF) Act: Regulates mandatory social security savings system, including CPF contribution requirements and calculations for commission-based earnings

Income Tax Act: Governs the tax treatment of commission income and related reporting requirements for both employer and employee

Employment of Foreign Manpower Act: Regulates the employment of foreign workers, including work pass requirements and conditions

Personal Data Protection Act (PDPA): Governs the collection, use, and disclosure of personal data, ensuring protection of employee's personal information

Industrial Relations Act: Covers employee rights, representation, and dispute resolution mechanisms in employment relationships

Workplace Safety and Health Act: Ensures workplace safety and health standards are maintained, including any specific requirements for the role

Commission Structure Requirements: Specific contractual elements including commission calculation method, payment terms, frequency, and any minimum guaranteed income

Performance Metrics Framework: Documentation of performance targets, metrics for commission qualification, and any clawback provisions

Termination Provisions: Specific requirements regarding notice period and conditions for termination in commission-based employment

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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