Sales Employment Contract for Philippines

Sales Employment Contract Template for Philippines

A comprehensive employment agreement governed by Philippine law, specifically designed for sales professionals. This contract outlines the terms and conditions of employment including base salary, commission structures, sales targets, and performance metrics while ensuring compliance with Philippine Labor Code requirements. The document incorporates mandatory benefits under Philippine law such as SSS, PhilHealth, and Pag-IBIG, along with specific provisions for sales-related activities, territory assignments, and commission calculations. It includes protections for both employer and employee, addressing confidentiality, non-compete clauses, and clear performance expectations within the Philippine legal framework.

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What is a Sales Employment Contract?

The Sales Employment Contract serves as a crucial legal document for companies operating in the Philippines who wish to hire sales professionals. This contract type is specifically designed to address the unique aspects of sales roles, including commission structures, performance metrics, and territory assignments, while ensuring full compliance with Philippine labor laws and regulations. It should be used when hiring any sales professional, from entry-level sales representatives to senior sales managers, and must incorporate mandatory requirements under the Philippine Labor Code, including statutory benefits and worker protections. The document typically includes detailed commission structures, sales targets, and performance evaluation criteria, making it distinct from standard employment contracts. It's particularly important in industries where sales form a core business function and where clear metrics and territory definitions are essential for successful employment relationships.

What sections should be included in a Sales Employment Contract?

1. Parties: Identification of the employer company and the sales employee, including complete legal names and addresses

2. Background: Brief context of the employment relationship and the nature of the sales position

3. Definitions: Key terms used throughout the contract, including specific sales-related terminology

4. Appointment and Term: Position title, employment classification (probationary/regular), and duration of employment

5. Duties and Responsibilities: Detailed description of the sales role, reporting structure, and key performance expectations

6. Compensation and Benefits: Basic salary, commission structure, mandatory benefits (SSS, PhilHealth, Pag-IBIG), and other compensation elements

7. Working Hours and Location: Standard working hours, flexibility provisions, and primary work location or territory

8. Sales Targets and Performance Metrics: Specific sales goals, evaluation criteria, and performance review process

9. Confidentiality and Non-Disclosure: Protection of company information, trade secrets, and customer data

10. Company Policies: Compliance with company rules, regulations, and standard operating procedures

11. Termination: Grounds for termination, notice periods, and separation procedures

12. Governing Law: Specification of Philippine law as governing law and jurisdiction

13. Entire Agreement: Integration clause and procedure for amendments

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

1. Non-Compete Clause: Restrictions on post-employment competition, used when employee has access to sensitive client information

2. Territory Assignment: Specific geographical area or market segment allocation, used for field sales positions

3. Product Training: Specific training requirements and commitments, used for technical or specialized product sales

4. Vehicle and Equipment Provision: Terms for company-provided vehicles or equipment, used for field sales positions

5. Remote Work Provisions: Specific arrangements for remote work, used when position allows work-from-home setup

6. International Travel: Terms for international business travel, used for roles covering international markets

7. Team Leadership Responsibilities: Additional duties for team leader positions, used for senior sales roles

8. Quota Adjustment Mechanism: Process for adjusting sales targets, used in volatile markets or industries

What schedules should be included in a Sales Employment Contract?

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

2. Schedule B - Sales Targets: Specific quarterly/annual sales targets and measurement criteria

3. Schedule C - Benefits Package: Detailed description of additional benefits beyond statutory requirements

4. Schedule D - Territory Map: Geographical boundaries or customer segment definitions for assigned territory

5. Schedule E - Product Portfolio: List of products/services the employee is authorized to sell

6. Schedule F - Expense Policy: Guidelines for reimbursable expenses and claiming procedures

7. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines for sales activities

8. Appendix 2 - KPI Metrics: Detailed performance indicators and evaluation 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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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