Sales Employment Contract for Hong Kong

Sales Employment Contract Template for Hong Kong

A comprehensive employment contract tailored for sales professionals in Hong Kong, governed by Hong Kong employment law. This document establishes the terms and conditions of employment for sales roles, including detailed provisions for base salary, commission structures, sales targets, and performance metrics. It incorporates specific requirements under Hong Kong's Employment Ordinance and related legislation, while addressing unique aspects of sales-based employment such as territory rights, customer relationships, and competitive restrictions.

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What is a Sales Employment Contract?

The Sales Employment Contract is designed for use when hiring sales professionals in Hong Kong, providing a robust framework for both employer and employee. This document is essential for establishing clear terms of employment, particularly for roles involving commission-based compensation and sales targets. It ensures compliance with Hong Kong employment law, including the Employment Ordinance and Minimum Wage Ordinance, while addressing sales-specific considerations such as commission structures, territory assignments, and customer relationship management. The contract is suitable for various industries and can be customized based on the seniority of the role, commission structures, and specific industry requirements. It includes provisions for confidentiality, non-competition, and protection of business interests, which are crucial in sales-focused roles.

What sections should be included in a Sales Employment Contract?

1. Parties: Identifies the employer and employee with their full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Defines key terms used throughout the contract including 'Territory', 'Products', 'Commission', 'Targets'

4. Appointment and Term: Details of the position, job title, and duration of employment (fixed-term or continuous)

5. Duties and Responsibilities: Specific duties of the sales role, reporting structure, and performance expectations

6. Place of Work: Primary work location and any travel requirements

7. Hours of Work: Working hours, flexibility requirements, and overtime arrangements

8. Compensation: Base salary, commission structure, bonus schemes, and payment terms

9. Benefits: Standard benefits including MPF, medical insurance, and other allowances

10. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Hong Kong law

11. Confidentiality: Obligations regarding company and customer confidential information

12. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities and customer solicitation

13. Termination: Grounds for termination, notice periods, and procedures

14. Company Policies: Compliance with company policies, procedures, and code of conduct

15. Governing Law: Specification of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Sales Employment Contract?

1. Probation Period: Details of probationary period and conditions, if applicable

2. International Travel: Include when role requires regular international travel

3. Team Management: Include when position involves managing other sales staff

4. Intellectual Property: Include when employee may develop sales methods or materials

5. Change of Control: Include for senior sales positions regarding company ownership changes

6. Garden Leave: Include for senior positions or when dealing with sensitive customer relationships

7. Sales Targets Adjustment: Include when sales targets may need periodic adjustment

8. Remote Working: Include when role allows for remote work arrangements

What schedules should be included in a Sales Employment Contract?

1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

2. Schedule 2 - Sales Territory: Definition and maps of assigned sales territory or customer accounts

3. Schedule 3 - Performance Targets: Specific sales targets and KPIs

4. Schedule 4 - Benefits Details: Comprehensive list of benefits and their terms

5. Schedule 5 - Expense Policy: Guidelines for business expense claims and reimbursement

6. Appendix A - Company Car Policy: Terms of company car usage if provided

7. Appendix B - Sales Tools and Equipment: List of provided sales tools, equipment, and usage terms

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

Hong Kong

Publisher

Genie AI

Document Type

Evaluation Form

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Technology

Financial Services

Real Estate

Manufacturing

Telecommunications

Professional Services

Healthcare

Consumer Goods

Industrial Equipment

Automotive

Insurance

Pharmaceuticals

Media and Advertising

Construction

Relevant Teams

Sales

Business Development

Account Management

Customer Success

Revenue Operations

Commercial

Direct Sales

Channel Sales

Inside Sales

Field Sales

Regional Sales

Product Sales

Enterprise Sales

Strategic Accounts

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Regional Sales Director

Key Account Manager

Sales Consultant

Territory Manager

Inside Sales Representative

Outside Sales Representative

Sales Engineer

Senior Sales Executive

VP of Sales

Direct Sales Representative

Channel Sales Manager

Industries
Employment Ordinance (Cap. 57): Primary legislation governing employment relationships in Hong Kong, covering wage protection, rest days, holidays, leave entitlements, termination of employment, and other fundamental employment rights
Minimum Wage Ordinance (Cap. 608): Sets the statutory minimum wage requirements, which may apply to basic salary components of sales staff compensation
Mandatory Provident Fund Schemes Ordinance (Cap. 485): Requires employers and employees to make contributions to retirement funds, including provisions for commission-based income
Personal Data (Privacy) Ordinance (Cap. 486): Governs the collection, use, and handling of personal data, relevant for sales employees handling customer information
Sex Discrimination Ordinance (Cap. 480): Prohibits discrimination based on gender in employment terms and conditions
Disability Discrimination Ordinance (Cap. 487): Ensures equal employment opportunities and treatment for persons with disabilities
Trade Descriptions Ordinance (Cap. 362): Relevant for sales staff as it governs trade descriptions and practices in the sale of goods
Competition Ordinance (Cap. 619): Impacts sales practices and competitive behavior, particularly relevant for sales staff dealing with market competition
Contracts for Employment Outside Hong Kong Ordinance (Cap. 78): Applicable if sales role involves work outside Hong Kong
Occupational Safety and Health Ordinance (Cap. 509): Sets standards for workplace safety and health, applicable to all workplaces including sales environments
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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