What is a signed employment agreement necessary for?

A signed employment agreement serves as a formal contract between the employer and the employee, which can include various provisions and stipulations regarding the terms of employment. When it comes to the ability to sue for commission, having a signed agreement is crucial because it provides documented proof of the terms agreed upon regarding compensation. This legal backing is necessary to enforce the agreement and seek remedies in case of a dispute over commission payments.

In the context of agency law, the employment agreement clearly establishes the rights and obligations of both parties, ensuring that the agent understands their compensation structure and the conditions under which they may earn commissions. Without this documentation, it can be challenging to prove entitlement to commission or enforce claims if disagreements arise.

While setting commission rates, organizing training sessions, and determining office space are indeed important aspects of an employment relationship, they do not inherently require a signed agreement to the same extent as the right to sue for commission does. Those elements might be addressed in various ways within a relationship and may not hold the same legal weight as the formal contract in terms of legal recourse.