Salesperson Contract for the United Kingdom

Salesperson Contract Template for England and Wales

A legally binding employment agreement governed by the laws of England and Wales, specifically designed for sales professionals. The contract outlines the terms and conditions of employment, including base salary, commission structure, sales targets, territory allocation, and performance expectations. It incorporates key provisions for data protection, non-compete clauses, and intellectual property rights while ensuring compliance with UK employment law and sector-specific regulations.

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What is a Salesperson Contract?

The Salesperson Contract is essential for organizations hiring sales professionals in England and Wales. It establishes the legal framework for the employment relationship, protecting both employer and employee interests. This contract type is particularly important as it addresses unique aspects of sales roles, including commission structures, territory rights, and performance metrics. It ensures compliance with UK employment law while providing clarity on sales-specific obligations, targets, and incentive schemes. The document is designed to be robust enough to handle complex sales arrangements while remaining flexible for different industry requirements.

What sections should be included in a Salesperson Contract?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Duties and Responsibilities: Detailed description of the salesperson's role and obligations

5. Compensation Structure: Base salary, commission rates, and payment terms

6. Working Hours: Standard working hours and flexibility requirements

7. Term and Termination: Duration of contract and termination provisions

What sections are optional to include in a Salesperson Contract?

1. Travel Requirements: Details of travel obligations and expense policies for roles requiring significant travel

2. International Sales: Provisions for international territory management for roles involving international sales

3. Company Car: Terms of company vehicle provision when a company car is provided as part of the package

What schedules should be included in a Salesperson Contract?

1. Commission Structure Schedule: Detailed breakdown of commission calculations and thresholds

2. Sales Territory Schedule: Definition of geographical or customer segment boundaries

3. Sales Targets Schedule: Specific performance metrics and targets

4. Expense Policy: Detailed rules for expense claims and reimbursement

5. Company Policies: Reference to relevant company policies and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Clauses
Industries

Employment Rights Act 1996: Core legislation governing basic employment rights, terms and conditions requirements, notice periods, and protection against unfair dismissal

Equality Act 2010: Legislation ensuring protection against discrimination, equal treatment provisions, and reasonable accommodations in the workplace

National Minimum Wage Act 1998: Regulations governing minimum wage requirements and commission structure compliance for sales personnel

Working Time Regulations 1998: Laws controlling working hours limitations, rest breaks, and holiday entitlement for employees

Data Protection Act 2018 and UK GDPR: Legislation governing handling of personal data, privacy rights, and data protection obligations in employment relationships

Commercial Agents Regulations 1993: Specific regulations for commercial agents covering commission rights and post-termination compensation

Income Tax Act 2007 and NIC Act 2015: Tax legislation governing the treatment of salary and commission, including PAYE obligations

Competition and IP Laws: Legal framework covering competition law compliance, trade secrets protection, and intellectual property rights

Health and Safety at Work Act 1974: Legislation covering safety obligations and risk assessments, particularly relevant for field sales positions

Pensions Act 2008: Requirements for auto-enrollment and pension scheme obligations for employers

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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