Salary Plus Commission Agreement Template for South Africa

This Salary Plus Commission Agreement is designed for use in South African employment relationships where compensation includes both fixed and variable components. It is particularly relevant for sales-oriented roles or positions where performance-based pay is appropriate. The agreement complies with South African labor legislation, including the Basic Conditions of Employment Act and Labour Relations Act, while providing flexibility to accommodate industry-specific commission structures. This document should be used when establishing new employment relationships or formalizing existing arrangements where employee compensation will include both a base salary and commission earnings. It contains comprehensive provisions for salary, commission calculation methods, performance targets, payment terms, and other essential employment conditions.

1. Parties: Identifies and provides full details of the employer and employee

2. Background: Outlines the context of the employment relationship and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Basic Salary', 'Targets', etc.

4. Position and Duties: Details the employee's job title, role, responsibilities, and reporting lines

5. Duration of Employment: Specifies whether the contract is fixed-term or permanent, and start date

6. Remuneration Structure: Details the basic salary component and framework for commission earnings

7. Commission Terms: Specifies commission rates, calculation methods, earning conditions, and payment timing

8. Working Hours: Stipulates standard working hours, overtime requirements, and flexible arrangements if any

9. Leave Entitlements: Details annual leave, sick leave, family responsibility leave as per BCEA requirements

10. Performance Expectations: Outlines performance standards, targets, and review processes

11. Confidentiality: Describes confidentiality obligations regarding company information and trade secrets

12. Termination: Specifies notice periods and conditions for termination of employment

13. General Provisions: Includes standard clauses on governing law, entire agreement, and amendments