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Supplement to Employment Agreement: Sales Commission

Key points and template

Approovd helps you to create a legally compliant sales commission supplement with your employees easily and in just a few minutes. For only CHF 89 per document.

Key Points Included in this Supplement for a Sales Commission

Whether sales or leads are rewarded
Definition of commission’s structure
Whether specific sales objectives must be achieved
Payment modalities

Use this Supplement for a Sales Commission if …

… the existing employment contract already provides for the payment of a commission and you want to change it

… no commission has been provided yet and you want to change this

What is a Supplement for a Sales Commission?

This agreement is a supplement to an employment agreement and complements it with the relevant provisions on a sales commission. It is also possible to amend existing provisions on a sales commission with this supplement.

Under this commission supplement, the employer and the employees define under which conditions a commission must be paid, as well as its structure and amount. In most cases, either closed sales (“closing commission”) or the referral of potential customers or “leads” are rewarded with the commission. The sales commission is owed per order that employees close with customers. On the other hand, the lead referral commission is due if the employee refers a qualified potential customer order (so-called “sales qualified leads”). The referral commission is particularly common in junior sales positions, where employees have fewer responsibilities, and the closing of the deal is done by another team.

The commission can be a fixed percentage or amount per order. The percentage or amount can also be variable. In this case, the commission level depends on the achievement of certain targets, such as a monthly turnover or the contract value.