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Sales Commission Policy: Timing and Manner of Payment

[Company Name] pays commissions based on sales procured. The rates of commission, as well as the required profit margins, will be given to each new sales employee at time of hire. The company reserves the right to change commission rates and profit margin requirements as needed to protect the financial integrity of the company or to serve any other legitimate business interest.

[Company Name] will pay commissions on the [day] of each month, and only on final sales. Commission payments will be made on the next commission payday after full payment from the customer is received for the sale.

[Company Name] may provide a recoverable draw payment on the commission payday when earned commission payments are less than [amount] for the month. This draw is an advance against all commissions earned and will be deducted from the next commission paycheck. If an employee's draw exceeds his or her commissions in any given month, the shortage will be carried forward and deducted from the next available commission paycheck.

Commissions will be considered final after 30 days. If you have a question, problem or disagreement with the amount of commission paid on a sale, be sure to submit in writing the details of your issue to the director of human resources within 30 days of the date the sale was finalized.


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