Run exhaustive scenario's to make sure the company is always making a profit at the minimum or better percentage; on every product that the agreement covers. Nothing like losing money, unless you prohibit commissions below a threshold in the contract. 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. This form serves our purpose well. Interested in learning about necessary employment practices and forms? Check out our HR Guide for more information. Whether you are about to hire a new sales employee who works on commission or going to accept a great job that includes sales commissions, don’t forget to sign a commission sales agreement because it will protect your rights and duties in future time as well as to serve as a legal document to settle any future dispute. A well drafted commission sales agreement is a legal document and really helpful for both employer and employee as it outlines the comprehensive details of their relationship to prevent errors and misunderstandings.