Salesperson Employment Contract for Philippines

Salesperson Employment Contract Template for Philippines

A comprehensive employment contract tailored for sales professionals in the Philippines, compliant with Philippine Labor Code and related employment legislation. This document establishes the terms of employment, including base salary, commission structures, sales targets, territory assignments, and performance metrics. It incorporates mandatory provisions under Philippine law regarding benefits, leave entitlements, and social security while addressing specific aspects of sales roles such as territory management, customer relationships, and commission-based compensation schemes.

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What is a Salesperson Employment Contract?

The Salesperson Employment Contract is essential for companies operating in the Philippines who employ sales professionals. This document ensures compliance with Philippine labor laws while addressing the unique aspects of sales roles, including commission structures, performance metrics, and territory management. It should be used when hiring any sales professional, whether entry-level or senior, and must incorporate mandatory provisions under Philippine legislation such as the Labor Code, Social Security Law, and relevant DOLE guidelines. The contract typically includes detailed commission structures, sales targets, territory assignments, and performance evaluation criteria, while ensuring all statutory benefits and protections are properly documented. It's particularly important for roles where compensation includes variable components and where clear performance metrics need to be established.

What sections should be included in a Salesperson Employment Contract?

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

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

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

4. Appointment and Term: Details of the position, employment classification, and duration of employment

5. Duties and Responsibilities: Specific responsibilities of the salesperson, including sales targets, reporting requirements, and customer relationship management

6. Work Hours and Location: Expected working hours, flexibility requirements, and primary work location or territory

7. Compensation Structure: Base salary, commission rates, and payment terms including statutory benefits

8. Benefits and Leave: Statutory and additional benefits, various types of leave entitlements as per Philippine law

9. Performance Standards: Expected sales targets, KPIs, and evaluation criteria

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

11. Company Property: Provisions regarding company assets, sales materials, and equipment provided

12. Termination: Grounds for termination, notice periods, and post-employment obligations

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

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

1. Non-Compete Clause: Restrictions on working with competitors after employment ends - optional based on role seniority

2. Sales Territory Exclusivity: Definition of exclusive sales territories if applicable

3. Travel Requirements: Specific travel obligations and reimbursement policies if regular travel is required

4. Training and Development: Company-provided training programs and professional development opportunities

5. Product Knowledge Requirements: Specific product expertise requirements and maintenance thereof

6. Team Management: Include if the salesperson will have supervisory responsibilities

7. Expense Policy: Detailed policies on reimbursable expenses and approval processes

8. Remote Work Provisions: Include if remote work is permitted or required

9. Special Bonus Schemes: Additional incentive programs beyond standard commission structure

What schedules should be included in a Salesperson Employment Contract?

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

2. Schedule B - Sales Targets: Specific sales targets and quotas for performance evaluation

3. Schedule C - Territory Map: Geographical definition of assigned sales territory if applicable

4. Schedule D - Product List: List of products/services the salesperson is authorized to sell

5. Schedule E - Benefits Package: Detailed breakdown of all benefits and eligibility criteria

6. Schedule F - Expense Guidelines: Detailed guidelines for expense claims and reimbursement procedures

7. Appendix 1 - Company Policies: Relevant company policies including sales practices and ethical guidelines

8. Appendix 2 - Performance Evaluation Metrics: Detailed KPIs 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

Sector

Sales

Cost

Free to use

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