When you're about to hire that stellar new sales employee who works on commission, or you're about accept a great job that includes commissions, a Commission Agreement is your friend. A Commission Agreement is a contract between an employer and an employee for work paid on commission. You can pay (or get paid) a lot of different ways: by the hour, on salary, or on commission. If someone's pay is based in whole or in part on commission, they should sign a Commission Agreement before their first day. Rocket Lawyer provides information and software only. Rocket Lawyer is not a "lawyer referral service" and does not provide legal advice or participate in any legal representation. The PDF template covers the parties details, the terms and objectives of the agreement. This Agreement outlines the employment terms and compensation so both employer and employee know what to expect going forward. The Agreement is helpful for both employer and employee as it outlines the details of the work relationship. Terms include a definition of the expected employment, and commission percentages and salary, if applicable.