Sales Employment Contract Template for Pakistan

A comprehensive employment agreement tailored for sales professionals in Pakistan, governed by Pakistani labor laws and commercial regulations. This contract establishes the terms and conditions of employment for sales personnel, including base compensation, commission structures, sales territories, performance metrics, and protective covenants. The document incorporates key provisions from Pakistani employment legislation, including the Industrial and Commercial Employment Ordinance and relevant labor laws, while addressing specific requirements for sales roles such as target setting, customer relationship management, and commission-based incentives.

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What is a Sales Employment Contract?

The Sales Employment Contract serves as a crucial legal document for companies operating in Pakistan who wish to hire sales professionals under clear, legally-compliant terms. This contract type is specifically designed to address the unique aspects of sales roles, including commission structures, territory assignments, and performance metrics, while ensuring compliance with Pakistani employment laws and regulations. It's particularly important for businesses that operate in competitive markets where sales professionals handle significant customer relationships and confidential information. The document provides comprehensive coverage of employment terms, protection of business interests, and clear performance expectations, making it essential for both small businesses and large corporations engaging sales personnel in Pakistan.

What sections should be included in a Sales Employment Contract?

1. Parties: Identification of the employer company and the sales employee with complete details

2. Background: Context of the employment relationship and brief description of the company's business

3. Definitions: Key terms used throughout the contract including 'Territory', 'Products', 'Commission', 'Targets'

4. Appointment and Term: Official designation, employment start date, and duration of contract

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

6. Compensation Structure: Base salary, commission rates, bonus schemes, and payment terms

7. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location

8. Sales Targets and Performance Metrics: Expected sales targets, evaluation criteria, and performance review process

9. Leave Entitlement: Annual, sick, and other leave allowances as per Pakistani labor laws

10. Confidentiality: Protection of company's confidential information and trade secrets

11. Non-Competition: Restrictions on working with competitors during and after employment

12. Termination: Conditions and process for contract termination by either party

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

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

1. Probation Period: Terms of initial probation period - optional for experienced hires

2. International Travel: Include if role requires international travel - terms and compensation

3. Product Training: Specific training requirements and commitments - relevant for technical products

4. Vehicle Allowance: Terms of vehicle provision or allowance - if applicable to the role

5. Team Management: Include if the role involves managing other sales staff

6. Inventory Management: Include if employee will handle product inventory

7. Digital Tools and Resources: Terms of providing and using sales software and tools

8. Customer Relationship Transfer: Process for handling customer relationships post-employment

What schedules should be included in a Sales Employment Contract?

1. Schedule A - Compensation Details: Detailed breakdown of salary structure, commission rates, and bonus calculations

2. Schedule B - Sales Territory: Detailed description and/or maps of assigned sales territory

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

4. Schedule D - Sales Targets: Detailed quarterly/annual sales targets and measurement criteria

5. Schedule E - Company Policies: Relevant company policies including sales, expense, and reporting procedures

6. Appendix 1 - Commission Structure: Detailed commission calculations for different products/scenarios

7. Appendix 2 - Expense Policy: Guidelines for reimbursable expenses and claim procedures

8. Appendix 3 - Reporting Templates: Standard formats for sales reports and performance tracking

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

Pakistan

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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