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  1. #1
    Join Date
    Jul 2011

    Default Commissions Sales Compensation Agreement

    My question involves employment and labor law for the province of British Columbia in Canada:

    I have agreed to do sales calls for a local direct import-sales group, for the compensation of commissions out of the customers I took part in securing. I have secured some customers from the system I implemented in my workflow. Since I didn't know what to expect, I did not sign a contract at the time, and I felt the business group would keep their word (as I have known them personally for a few years). After getting a few leads, we both mutually agreed that we should sign an agreement for mutual protection down the road, and have that agreement being retro-active.

    I know this is a United States forum, but I'm trying my luck with my question anyway. I want to ask for suggestions on what holes that you can see potentially being unclear, opening an opportunity for dispute in the future. A draft of the contract (with personal information blacked out) is included below:

    "Date: April 10, 2011
    The employer, _______________________, and the employee, __________________, have agreed to this sales agent contract. The compensation for the employee would be a commission base of 25% of the profits on the additional sales made by the employee, payable on the month receiving the funds from the customer(s).
    Profit is calculated as revenue minus the cost. The costs include the following for each quantity of product:
    Material cost
    Inventory cost
    Transportation cost
    The employee is entitled to the compensation if any combination of the following is done to secure a new customer (recurring or not):
    Finding an appropriate contact (e.g. purchasing, materials, or safety managers) for the sales opportunity
    Calling appropriate contacts to establish new customer relationship (or re-establish old ones that were broken) and resolve product issues
    Scheduling an appointment with the rest of the team to deliver samples and orders
    Basic and bonus compensation will be reviewed on April 10, 2012 based on the performance.

    ________________________ _____________________________
    Employer (representative) Employee"

    Thanks in advance for your time and suggestions.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Commissions Sales Compensation Agreement

    B.C. is not a U.S. state. As you were told when you posted, and as you acknowledge in your post, this is a U.S. site. I suggest consulting a Canadian forum or lawyer.

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