Employee commission agreements for New Zealand businesses

It is usually worth doing when commission is a meaningful part of pay, when sales staff work under different targets or rules, or when there is any room for argument about when a sale really counts. Problems often arise around delayed payments, cancelled orders, split deals, or staff leaving before payment dates. A written agreement helps record the commercial deal in a way that is easier to apply consistently. The practical working model can be just as important as the contract wording, so the document should match what actually happens in practice.

These agreements commonly deal with who is eligible for commission, what events trigger entitlement, how commission is calculated, when it is paid, and whether adjustments apply for refunds, cancellations or non-payment by customers. They may also cover minimum performance thresholds, team sales, house accounts, discretion limits, and what happens if employment ends before settlement or invoicing. The exact drafting depends on your sales cycle and payroll setup. Clear wording matters because commission disputes often turn on small details in timing, calculation method and exceptions.

Important details include whether commission is based on signed deals, invoicing, payment received, margin, recurring revenue or another metric. It also matters whether the employee works alone or as part of a team, whether sales can later unwind, and whether there are probation, notice period or termination scenarios to address. Useful drafting usually starts with the real working model, then turns that into clear obligations and risk settings. If your current offer letters, employment agreements or bonus documents already mention commission, those documents should be checked for consistency.

Off-the-shelf wording can help you see the usual structure, but it may not deal with the facts that make your arrangement different. However, it often leaves unanswered questions that become expensive later. For example, it may not say what happens if a customer cancels after the employee has been paid, whether commission is earned on gross or net revenue, or how shared sales are handled. Those are the points that usually drive disagreement. A tailored agreement We will make the key issues clear so you can decide what to do next. This service also does not include ongoing HR management, dispute representation or tax advice.

Timing depends on how settled your commission model already is and whether existing employment documents need to be aligned. If you have a clear structure, the process is usually more straightforward. If there are multiple roles, exceptions, or legacy arrangements, extra drafting time may be needed to make the terms workable. After you engage, we review your commission setup, prepare the agreement, and discuss any points that need clarification before finalising the document. If you have a planned rollout date for staff, let us know early so timing can be managed around that.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Employee Commission Agreement service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

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