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Contract For Commission Based Employment for Singapore

Contract For Commission Based Employment Template for Singapore

A Contract for Commission Based Employment in Singapore is a legally binding agreement that establishes an employment relationship where compensation is primarily or partially based on commission earnings. This document complies with Singapore's Employment Act and related legislation, outlining commission structures, performance metrics, payment terms, and employment conditions. It includes provisions for CPF contributions, tax obligations, and other statutory requirements specific to Singapore's employment law framework.

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Contract For Commission Based Employment

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What is a Contract For Commission Based Employment?

The Contract For Commission Based Employment is essential for businesses in Singapore seeking to engage employees under performance-based compensation structures. This document is specifically designed to comply with Singapore's employment laws while protecting both employer and employee interests. It details commission calculations, performance expectations, payment schedules, and statutory obligations including CPF contributions. The contract is particularly relevant for sales-oriented roles where compensation is tied to successful transactions or achievement of specific targets.

What sections should be included in a Contract For Commission Based Employment?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including commission, territory, targets, and payment terms

4. Appointment and Duration: Terms of employment, role, and contract duration

5. Commission Structure: Detailed explanation of commission calculation and payment terms

6. Performance Metrics: Defined targets and measurement criteria

7. Payment Terms: Commission payment frequency and procedures

8. Duties and Obligations: Employee responsibilities and performance expectations

9. Termination: Conditions and procedures for contract termination

What sections are optional to include in a Contract For Commission Based Employment?

1. Minimum Guaranteed Income: Base salary provisions when offering a basic salary component

2. Territory Allocation: Defined sales territories or client assignments for roles with geographic responsibilities

3. Training and Support: Company-provided training and resources when specific training programs are offered

4. Expense Reimbursement: Policy for business-related expenses when role involves business expenses

What schedules should be included in a Contract For Commission Based Employment?

1. Commission Calculation Schedule: Detailed breakdown of commission rates and calculations

2. Performance Targets Schedule: Specific metrics and targets for commission eligibility

3. Territory/Client List: Assigned sales territories or client accounts

4. Employee Handbook Reference: Company policies and procedures applicable to the role

5. Benefits Schedule: 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

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions




































Clauses




































Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering basic terms, salary payment rules, working hours, rest days, and leave entitlements. Note: Some commission-based employees may be excluded if exceeding salary threshold.

Central Provident Fund (CPF) Act: Regulates mandatory contributions to Singapore's social security system, including treatment of commission as wages for CPF purposes and contribution rates for employer and employee.

Income Tax Act: Governs the taxation of commission income, including reporting requirements and tax obligations for both employer and employee.

Employment Claims Act: Provides framework for dispute resolution mechanisms and handling of salary-related claims in employment relationships.

Work Injury Compensation Act: Establishes requirements for workplace injury coverage and related insurance requirements for employees.

Personal Data Protection Act (PDPA): Regulates the collection, use, and protection of employee personal information and data protection policies.

Industrial Relations Act: Provides framework for employee-employer relationships and dispute resolution procedures.

Commission Structure Requirements: Specific contractual elements including commission calculation methods, performance metrics, targets, and payment terms.

Payment Terms Framework: Specifications for commission payment frequency, minimum guaranteed income (if applicable), and any clawback provisions.

Territory and Client Allocation: Guidelines for defining sales territories, client allocation, and related commission entitlements.

Non-compete and Confidentiality: Requirements for protecting business interests through non-compete clauses and confidentiality provisions 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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