How should I word a "draw against commission" in an employment contract?

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    2 Responses to “How should I word a "draw against commission" in an employment contract?”

    1. stckcheck Says:

      Base Salary (draw) of $x for the first y days guaranteed. Commissions of z% of gross profit. Base salary (draw) is fully recoverable against commissions and put an example of calculations eg. base $2,000 – GP $20,000 Commissions $3,200 less Draw $2000 = $1200

      Hope this helps

    2. Roosterkroozer Says:

      I usually word my contracts like this:

      "Remuneration shall be a draw against commission, at a rate of (whatever draw you wish to give), deductible from commssions earned."

      Remember, though, that if you pay a draw against commission then you have become an employer, not a contracting entity. In order to maintain the independed contractor status you must state that in your contract. You should obtain a good independent contractor’s agreement form from any good office supply store. Better yet, contact an attorney and have a contract drawn up that you can use repeatedly.