The Sales Manager Employment Contract is a specialized employment agreement designed for use in Germany when hiring or promoting individuals into sales management positions. This document is essential for establishing clear terms of employment while ensuring compliance with German labor laws, including the German Civil Code (BGB) and Commercial Code (HGB). It addresses crucial aspects such as base compensation, commission structures, sales targets, team management responsibilities, and territory assignments. The contract is typically used when hiring new sales managers, promoting internal candidates to management positions, or updating terms for existing sales managers. It includes specific provisions for performance measurement, client relationship management, and team leadership, while incorporating mandatory German legal requirements regarding working hours, leave entitlements, and termination notice periods.
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1. Parties: Identification of the employer company and the employee with full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Detailed description of the role, responsibilities, and reporting structure
5. Duration and Probationary Period: Term of employment and initial probationary period details
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, flexibility requirements, and overtime provisions
8. Remuneration: Base salary, payment intervals, and tax/social security deductions
9. Sales Targets and Commission: Structure of sales targets, commission calculations, and payment terms
10. Benefits and Expenses: Additional benefits, expense reimbursement policies, and company car provisions
11. Holiday Entitlement: Annual leave allowance and holiday booking procedures
12. Illness and Sick Pay: Sick leave notification requirements and sick pay entitlements
13. Confidentiality: Protection of company confidential information and trade secrets
14. Data Protection: GDPR compliance and handling of personal data
15. Company Property: Rules regarding use and return of company equipment and materials
16. Termination: Notice periods and grounds for termination
17. Post-Termination Obligations: Continuing obligations after employment ends
18. Governing Law: Confirmation of German law application and jurisdiction
1. Non-Competition Clause: Post-employment competition restrictions (only if compensation is provided as required by German law)
2. International Travel: Include if role requires significant international travel
3. Team Management: Include if managing direct reports is part of the role
4. Training Requirements: Include if specific qualifications or ongoing training is mandatory
5. Flexible Working: Include if allowing home office or flexible arrangements
6. Stock Options/Share Schemes: Include if offering company share participation programs
7. Additional Languages: Include if specific language skills are required
8. Inventions and IP Rights: Include if role involves product development or creative work
1. Schedule 1 - Commission Structure: Detailed commission rates, calculations, and examples
2. Schedule 2 - Sales Territories: Definition of assigned sales territories and accounts
3. Schedule 3 - Company Car Policy: Terms of company car usage and maintenance
4. Schedule 4 - Bonus Scheme: Details of any additional bonus or incentive schemes
5. Schedule 5 - Benefits Package: Comprehensive list of benefits and eligibility criteria
6. Schedule 6 - IT and Communication Policy: Rules for use of company IT systems and communication tools
7. Appendix A - Job Description: Detailed description of roles and responsibilities
8. Appendix B - Data Privacy Notice: GDPR-compliant privacy notice for employee data processing
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