This Commission Based Employment Contract is essential for Swiss employers hiring employees where a significant portion of compensation is based on commission. The document is structured to comply with Swiss employment law requirements while providing a clear framework for commission-based compensation. It should be used when engaging sales professionals, brokers, agents, or other roles where performance-based pay is appropriate. The contract includes comprehensive provisions for base salary (if applicable), commission calculations, payment terms, clawback provisions, and performance metrics. It ensures compliance with Swiss labor laws, social security requirements, and mandatory employment provisions while protecting both employer and employee interests in a commission-based relationship. The document is particularly relevant for sales-oriented positions across various industries where variable compensation forms a key part of the employment package.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract, particularly focusing on commission-related terminology
4. Position and Duties: Job title, role description, and key responsibilities of the employee
5. Term and Notice Period: Duration of employment (if fixed-term) and notice periods for termination as per Swiss law
6. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements
7. Base Salary: Fixed component of compensation, if any, and payment intervals
8. Commission Structure: Detailed explanation of commission calculation methodology, qualifying sales/transactions, and earning criteria
9. Commission Payment Terms: Timing of commission payments, calculation periods, and payment processing details
10. Social Security and Insurance: Mandatory Swiss social security contributions and insurance arrangements
11. Holidays and Leave: Annual leave entitlement, public holidays, and other leave provisions
12. Expenses: Policy on business expenses reimbursement and claiming procedures
13. Confidentiality: Obligations regarding company and client confidential information
14. Data Protection: Handling of personal data in compliance with Swiss data protection laws
15. Governing Law: Confirmation of Swiss law governance and jurisdiction
1. Probationary Period: Include when a probationary period is desired, specifying duration and terms
2. Non-Competition: Add when restricting post-employment competition is necessary, ensuring compliance with Swiss law limitations
3. Non-Solicitation: Include when protecting client relationships and employee relationships is crucial
4. Company Property: Add when employee is provided with significant company equipment or resources
5. Training and Development: Include when specific training requirements or professional development programs are offered
6. Performance Reviews: Add when formal performance review processes affect commission structures
7. Bonus Schemes: Include when additional bonus programs exist alongside commission structure
8. Remote Working: Add when remote work arrangements are part of the employment terms
9. International Travel: Include when role requires international travel or cross-border activities
1. Commission Calculation Examples: Detailed examples showing how different commission scenarios are calculated
2. Sales Territory Definition: Specification of geographical or client segment boundaries for commission eligibility
3. Product/Service Commission Rates: Detailed breakdown of commission rates for different products or services
4. Performance Targets: Specific sales or performance targets linked to commission rates
5. Expense Policy: Detailed policy on claimable expenses and reimbursement procedures
6. Benefits Summary: Overview of additional benefits and insurance coverage
7. Company Policies: Reference to relevant company policies affecting the employment relationship
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