Sales Representative Contract Template for Philippines

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Key Requirements PROMPT example:

Sales Representative Contract

"I need a Sales Representative Contract for our pharmaceutical company in the Philippines, covering Metro Manila territory, with a 5% commission structure and quarterly sales targets, starting January 2025."

Document background
The Sales Representative Contract is essential for businesses operating in the Philippines that rely on external or internal sales representatives to market and sell their products or services. This document is particularly crucial as it must comply with Philippine labor laws, including the Labor Code of the Philippines and relevant DOLE regulations governing commission-based employment relationships. The contract typically includes detailed provisions on territory allocation, commission structures, performance metrics, and compliance requirements specific to the Philippine business environment. It's designed to protect both the company's interests in terms of market representation and the sales representative's rights under local employment laws, while establishing clear guidelines for the working relationship, compensation, and performance expectations.
Suggested Sections

1. Parties: Identifies and provides full details of the Company and the Sales Representative

2. Background: Brief context about the company's business and need for sales representation

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Territory: Defines the scope of appointment and designated sales territory

5. Term and Renewal: Specifies the duration of the agreement and renewal conditions

6. Duties and Responsibilities: Details the sales representative's obligations and performance expectations

7. Company's Obligations: Outlines the company's commitments to support the sales representative

8. Compensation and Commission Structure: Details the payment terms, commission rates, and calculation methods

9. Sales Targets and Performance Standards: Establishes minimum performance requirements and sales quotas

10. Reporting Requirements: Specifies the format and frequency of sales reports and documentation

11. Confidentiality: Protects company's confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restricts competitive activities during and after the agreement

13. Termination: Details grounds and procedures for ending the agreement

14. Post-Termination Obligations: Specifies duties and restrictions after contract termination

15. Governing Law: Establishes Philippines law as governing law and jurisdiction

Optional Sections

1. Training and Support: Include when company provides specific training programs or support systems

2. Product Returns and Complaints: Include for products with return policies or warranty requirements

3. Expense Reimbursement: Include when company will reimburse specific business expenses

4. Insurance Requirements: Include when representative must maintain specific insurance coverage

5. Intellectual Property Rights: Include when representative will handle branded materials or create IP

6. Sub-agents: Include if representative is allowed to appoint sub-agents

7. Digital Tools and Systems: Include when specific software or systems must be used

8. Customer Data Protection: Include when representative will handle customer personal data

9. Marketing Materials: Include when specific guidelines for marketing material usage apply

10. Performance Bonuses: Include when additional incentive structures are offered

Suggested Schedules

1. Schedule 1 - Territory Map: Detailed map and description of assigned sales territory

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates and calculation methods

3. Schedule 3 - Product List: List of products/services the representative is authorized to sell

4. Schedule 4 - Sales Targets: Specific sales quotas and performance metrics

5. Schedule 5 - Reporting Templates: Standard forms for sales reports and documentation

6. Schedule 6 - Expense Policy: Detailed policy on reimbursable expenses and procedures

7. Appendix A - Code of Conduct: Company's ethical guidelines and professional standards

8. Appendix B - Customer Service Standards: Required customer service levels 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

Relevant legal definitions
Clauses
Relevant Industries

Consumer Goods

Pharmaceutical

Medical Devices

Technology

Real Estate

Insurance

Financial Services

Manufacturing

Telecommunications

Construction Materials

Automotive

Food and Beverage

Electronics

Industrial Equipment

Retail

Relevant Teams

Sales

Legal

Human Resources

Finance

Operations

Compliance

Commercial

Business Development

Contract Administration

Risk Management

Relevant Roles

Sales Representative

Sales Manager

Sales Director

Business Development Manager

Account Executive

Territory Manager

Regional Sales Manager

Sales Operations Manager

Chief Sales Officer

Commercial Director

Channel Manager

Product Specialist

Sales Coordinator

Business Development Representative

Key Account Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary law governing employment relationships, including provisions on employment contracts, working conditions, compensation, and termination
Civil Code of the Philippines (Republic Act No. 386): Contains provisions on agency relationships, contracts, and obligations which are relevant for sales representative agreements
National Internal Revenue Code: Governs taxation of income, including provisions specific to commission-based compensation and withholding tax requirements
Social Security Law (Republic Act No. 11199): Mandates social security coverage and contributions for employees, including sales representatives
PhilHealth Law (Republic Act No. 7875): Requires health insurance coverage for employees, including provisions for sales representatives
Home Development Mutual Fund Law (Republic Act No. 9679): Covers Pag-IBIG Fund requirements for employees' housing and short-term loans
Data Privacy Act of 2012 (Republic Act No. 10173): Regulates the collection and handling of personal information, relevant for maintaining sales representatives' data
Fair Competition Law (Republic Act No. 10667): Relevant for non-compete clauses and trade secrets protection in sales representative contracts
Safe Spaces Act (Republic Act No. 11313): Provides protection against harassment in the workplace, including for field-based sales representatives
Department of Labor and Employment (DOLE) Guidelines on Employment: Administrative regulations and guidelines specific to employment relationships and working conditions
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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