Salesman Contract Of Employment for Hong Kong

Salesman Contract Of Employment Template for Hong Kong

A comprehensive employment agreement governed by Hong Kong law, specifically designed for sales professionals working on a commission or mixed compensation structure. The document outlines the terms and conditions of employment, including base salary, commission structures, sales targets, performance metrics, and territory assignments, while ensuring compliance with Hong Kong's Employment Ordinance and related employment legislation. It includes provisions for confidentiality, non-compete clauses, and customer relationship management, tailored to protect the employer's interests while clearly defining the salesperson's rights and obligations.

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What is a Salesman Contract Of Employment?

This Salesman Contract of Employment is essential for establishing clear employment terms between companies and their sales staff in Hong Kong. It is specifically designed to address the unique aspects of sales roles, including commission-based compensation, performance metrics, and territory management, while ensuring compliance with Hong Kong employment law, particularly the Employment Ordinance (Cap. 57). The document should be used when hiring new sales staff or updating terms for existing sales employees, especially where commission-based compensation is involved. It includes comprehensive provisions for base salary, commission structures, sales targets, territorial rights, customer relationship management, and post-employment restrictions, providing protection for both employer and employee interests.

What sections should be included in a Salesman Contract Of Employment?

1. Parties: Identification of the employer company and the salesperson employee

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

3. Definitions: Key terms used throughout the agreement, including commission-related terminology

4. Appointment and Duration: Terms of employment, position title, and employment period (fixed-term or continuous)

5. Duties and Responsibilities: Detailed description of the salesperson's role, reporting structure, and key performance areas

6. Compensation Structure: Base salary, commission calculation methods, payment terms, and review periods

7. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location

8. Sales Targets and Performance Metrics: Expected sales targets, KPIs, and performance evaluation criteria

9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Employment Ordinance

10. Confidentiality: Protection of company's confidential information and trade secrets

11. Intellectual Property: Ownership of work products and customer relationships

12. Post-Employment Restrictions: Non-compete and non-solicitation provisions

13. Termination: Notice periods and grounds for termination

14. Governing Law: Specification of Hong Kong law as governing law

What sections are optional to include in a Salesman Contract Of Employment?

1. Probationary Period: Include when the company wants to implement an initial trial period

2. Travel Requirements: Include when the role requires regular business travel

3. Expense Policy: Include when the salesperson needs to entertain clients or incur business expenses

4. Team Management: Include when the role involves managing other sales staff

5. Product Training: Include when specific product training requirements exist

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

7. Company Car: Include when a company vehicle is provided

8. Insurance Benefits: Include when additional insurance coverage is provided beyond statutory requirements

What schedules should be included in a Salesman Contract Of Employment?

1. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Sales Territories: Defined geographical or customer segment boundaries for the salesperson

3. Product List: List of products/services the salesperson is authorized to sell

4. Performance Bonus Scheme: Details of any additional bonus structures or incentive schemes

5. Expense Policy Guidelines: Detailed rules and limits for expense claims

6. Company Policies: Reference to relevant company policies affecting sales staff

7. Benefits Schedule: Detailed description of all employment benefits and eligibility criteria

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

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Financial Services

Technology

Real Estate

Manufacturing

Pharmaceutical

Telecommunications

Professional Services

Consumer Goods

Industrial Equipment

Insurance

Automotive

Relevant Teams

Sales

Business Development

Account Management

Human Resources

Legal

Finance

Operations

Commercial

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Territory Manager

Key Account Manager

Regional Sales Director

Inside Sales Representative

Outside Sales Representative

Sales Consultant

Product Specialist

Sales Executive

Industries
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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