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Employment Agreement for Sales Employee

Key points and template

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Key Points Included in This Employment Agreement for Sales Employee

Details of the monetary incentives, including how the sales commission is calculated and when it is paid
How business trips should be made and how the company will reimburse expenses
Specific arrangements regarding the sales activities and their geographical scope, including whether the employee will be granted exclusive representation rights
Whether non-compete/non-solicit covenants apply after the end of the employment relationship, and if so including their duration and geographical scope as well as what happens if the employee breaches these covenants
Duration of employment, termination of employment, and probation period
Details of the job

Use This Employment Agreement for Sales Employee if …

… you want to hire an employee in sales and distribution

… you want to provide the right incentives (variable salary)

… you want to make sure crucial client information will not be shared with the competition, even when the employee no longer works for you

What is an Employment Agreement for Sales Employee?

Under an employment agreement for sales employee, a company hires an employee whose main task is to expand the company’s sales in a given territory or region.

The company typically pays the employee, on top of the base salary, a sales incentive in the form of a commission.

The employee’s duties usually involve business trips (with a company’s or the employee’s private car or in public transports) and meetings at prospective clients. Because of her direct interaction with the company’s clients, the employee is trusted with and handles confidential commercial information. This in particular requires careful drafting in the agreement to ensure that the company’s interests are adequately protected, even after the end of the employment relationship.