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Sales Commission Agreement

A completed sales commission agreement distinguishing employee status from commercial-agency status and recording calculation and clawback.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# SALES COMMISSION AGREEMENT

Date: 23 July 2031

Parties: Redbrook Instruments Limited and Lauren Evans

## 1. Purpose and parties

Redbrook Instruments Limited employs Lauren Evans as a UK sales manager under her employment contract. This commission schedule supplements that contract; it does not appoint Lauren as a self-employed commercial agent, and the parties will not label the relationship differently from the facts.

## 2. Facts, scope and terms

Commission is earned on a new customer contract in Schedule 1 when Redbrook accepts the order and receives cleared customer payment. It is 8% of net revenue excluding VAT, refunds, credit notes and separately identified pass-through costs; renewals and sales to listed existing customers are excluded.

## 3. Process and responsibilities

Lauren receives an itemised statement by the twentieth day of the following month and payment through payroll, subject to PAYE and National Insurance. If a customer cancels or a debt is written off within six months, a proportionate clawback may be set off after notice; undisputed commission is paid on time.

## 4. Evidence, records and safeguards

Lauren must record opportunities accurately, avoid misrepresentation and disclose conflicts. Redbrook may audit calculations and must retain order, payment and cancellation records. No commission is earned for a sale outside the territory or after termination unless this schedule's pipeline rule applies.

## 5. Review, escalation and outcome

For contracts accepted before termination and paid within 90 days, the commission remains payable. The parties have considered the Commercial Agents Regulations 1993 and record that they do not intend those Regulations to apply to this employee relationship; any mandatory statutory right prevails over that description.

## 6. Reservations and practical protections

The scheme is discretionary as to future targets but not as to a correctly calculated earned commission. Redbrook may amend rates prospectively on 30 days' written notice and will consult on a material adverse change; it may not use an amendment retrospectively to remove an accrued payment.

## 7. England and Wales law and completion

This schedule is signed on 23 July 2031 under England and Wales employment law. Hand delivery, post and email are separate permitted notice methods. Lauren may obtain independent advice, and nothing waives unlawful deduction, discrimination or employment-status rights.

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