The Salesperson Employment Contract is essential for companies operating in Pakistan that employ sales professionals. This document is designed to comply with Pakistani employment law, including the Industrial and Commercial Employment Ordinance 1968, Minimum Wages Ordinance 1961, and relevant sales tax regulations. It should be used when hiring any sales professional who will be responsible for product or service sales, whether in a territory-based, account-based, or general sales role. The contract includes crucial elements such as commission structures, sales targets, territory definitions, and performance expectations, while ensuring compliance with local labor laws regarding working hours, benefits, and social security requirements. It's particularly important for protecting both employer and employee interests in commission-based relationships and establishing clear performance metrics and compensation structures.
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1. Parties: Identification of the employer company and the salesperson, including full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Commission', 'Sales Targets', etc.
4. Appointment and Term: Details of the employment position, designation, and duration (fixed-term or permanent)
5. Duties and Responsibilities: Specific roles, sales responsibilities, reporting structure, and performance expectations
6. Compensation Structure: Base salary, commission rates, bonus structures, and payment terms
7. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location
8. Sales Targets and Performance Metrics: Definition of sales goals, KPIs, and performance evaluation criteria
9. Territory and Customer Assignment: Designated sales territory and any exclusive customer relationships
10. Confidentiality and Non-Disclosure: Protection of company information, trade secrets, and customer data
11. Leave Entitlement: Annual, sick, and other leave policies as per Pakistani labor laws
12. Termination: Conditions for contract termination, notice periods, and consequences
13. Governing Law: Specification of Pakistani law as governing law and jurisdiction
1. Non-Compete Clause: Restrictions on working with competitors (use when dealing with senior sales positions or sensitive markets)
2. Intellectual Property Rights: ownership of sales materials and innovations (include for positions involving product development or marketing)
3. Travel and Expense Policy: Rules for business travel and reimbursement (include for roles requiring extensive travel)
4. Training and Development: Professional development opportunities and requirements (include for entry-level or specialized sales roles)
5. Vehicle Allowance: Terms for company vehicle or transport allowance (include if applicable to the role)
6. Remote Work Provisions: Guidelines for remote work arrangements (include if allowing flexible working locations)
7. International Travel: Terms for international business travel (include for roles covering international markets)
8. Team Management Responsibilities: Leadership duties and team management (include for senior sales positions)
1. Schedule A - Compensation Details: Detailed breakdown of salary structure, commission rates, and bonus calculations
2. Schedule B - Sales Territory Map: Geographical definition of assigned sales territory with any exclusions
3. Schedule C - Product List: List of products/services the salesperson is authorized to sell
4. Schedule D - Sales Targets: Quarterly/annual sales targets and performance benchmarks
5. Schedule E - Commission Structure: Detailed commission calculation methods and payment schedules
6. Schedule F - Expense Policy: Detailed guidelines for business expense claims and reimbursement
7. Appendix 1 - Code of Conduct: Company's sales ethics and conduct guidelines
8. Appendix 2 - Reporting Templates: Standard formats for sales reports and documentation
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