Sales Representative Contract for Philippines

Sales Representative Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes and regulates the relationship between a company and its sales representative. This contract outlines the terms of appointment, territorial rights, commission structure, performance expectations, and compliance requirements in accordance with Philippine labor laws and regulations. It includes provisions for sales targets, reporting obligations, confidentiality requirements, and termination conditions, while ensuring alignment with local employment standards and social security requirements. The document incorporates specific provisions required by Philippine legislation regarding commission-based employment relationships and agency arrangements.

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What is a Sales Representative Contract?

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.

What sections should be included in a Sales Representative Contract?

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

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

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

What schedules should be included in a Sales Representative Contract?

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

Jurisdiction

Philippines

Publisher

Genie AI

Sector

Sales

Cost

Free to use

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