oboloo Glossary

Employee Commission Agreement

oboloo Glossary

Employee Commission Agreement

An Employee Commission Agreement is a contract between an employer and an employee that outlines the financial reward for the employee for meeting or exceeding predetermined sales targets. It is typically used to motivate employees to reach their full potential by offering them generous commission rates or bonuses when they make a sale or generate business. The agreement should be clearly written, outlining all details of the commission terms including any applicable performance thresholds, payment timelines, and other related issues. By establishing a clear communication line regarding the commission agreement, employers can ensure that nothing is left to chance and keep both parties accountable for achieving the desired results.