The Sales Manager Employment Contract is designed for use when hiring or promoting individuals into sales management positions in the Philippines. This document serves as a crucial legal framework that establishes the employment relationship while ensuring compliance with Philippine labor laws, including the Labor Code and various employment-related regulations. It is specifically structured to address the unique aspects of sales management roles, including sales target setting, team supervision, commission structures, and performance evaluation criteria. The contract includes mandatory provisions required by Philippine law while incorporating industry-standard practices for sales management positions. It is particularly important for organizations looking to formalize their sales leadership positions and establish clear expectations, responsibilities, and compensation structures for their sales management personnel.
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1. Parties: Identification of the employer company and the sales manager employee, including complete legal names and addresses
2. Background: Brief context of the employment relationship and the sales manager position
3. Definitions: Key terms used throughout the contract, including sales-specific terminology
4. Appointment and Term: Details of the position, employment classification, and duration (fixed-term or indefinite)
5. Duties and Responsibilities: Comprehensive outline of the sales manager's role, including team management and sales targets
6. Work Location and Hours: Primary workplace, work schedule, and flexibility provisions
7. Compensation and Benefits: Base salary, commission structure, and statutory benefits
8. Sales Targets and Performance Metrics: Definition of sales goals, KPIs, and performance evaluation criteria
9. Team Management: Responsibilities related to managing and developing the sales team
10. Statutory Benefits: Mandatory benefits under Philippine law including SSS, PhilHealth, and Pag-IBIG
11. Leave Entitlements: Various leave types and conditions as per Philippine labor law
12. Confidentiality: Protection of company information and trade secrets
13. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
14. Intellectual Property: Ownership of work products and innovations
15. Termination: Grounds and procedures for contract termination
16. Governing Law: Specification of Philippine law as governing law
17. Dispute Resolution: Process for resolving employment-related disputes
1. Probationary Period: Details of probation period if applicable (used for new hires only)
2. Relocation Terms: Include when position requires relocation
3. International Travel: Include when role involves overseas business travel
4. Company Car Provision: Include when a company vehicle is provided
5. Stock Options or Equity: Include when offering company shares or stock options
6. Remote Work Provisions: Include when allowing work-from-home arrangements
7. Training and Development: Include when specific training commitments are made
8. Sign-on Bonus: Include when offering a one-time joining bonus
9. Territory Assignment: Include when role is limited to specific geographic areas
1. Schedule A - Compensation Structure: Detailed breakdown of base salary, commission rates, and bonus calculations
2. Schedule B - Sales Targets and KPIs: Specific sales goals, metrics, and evaluation criteria
3. Schedule C - Benefits Package: Comprehensive list of benefits and eligibility criteria
4. Schedule D - Territory Map: Geographic area of responsibility if applicable
5. Schedule E - Reporting Structure: Organization chart showing reporting relationships
6. Appendix 1 - Commission Rules: Detailed rules for commission calculation and payment
7. Appendix 2 - Expense Policy: Guidelines for business expense reimbursement
8. Appendix 3 - Code of Conduct: Company's code of conduct and ethical standards
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