Salesman Contract Of Employment Template for Saudi Arabia

The Salesman Contract Of Employment is a specialized employment agreement designed for use in Saudi Arabia when hiring sales professionals. It combines standard employment terms required under Saudi Labor Law with specific provisions for sales-based roles. This document is essential when engaging sales professionals in Saudi Arabia, whether for domestic or international companies operating in the Kingdom. The contract addresses crucial elements such as basic compensation, commission structures, sales territories, performance targets, and protection of company interests through non-compete and confidentiality clauses. It ensures compliance with mandatory requirements including Wage Protection System (WPS) regulations, Saudization requirements, and social insurance obligations while providing flexibility for various sales roles and compensation models. This template is regularly updated to reflect changes in Saudi labor regulations and market practices.

1. Parties: Identification of the employer company and the salesman employee, including full legal names and addresses

2. Background: Brief context about the company's business and the purpose of hiring the salesman

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

4. Appointment and Term: Terms of employment, position title, and duration (fixed-term or unlimited)

5. Duties and Responsibilities: Detailed description of the salesman's roles, responsibilities, and performance expectations

6. Working Hours and Location: Specified working hours, territory coverage, and base location requirements

7. Compensation Structure: Basic salary, commission rates, bonus structures, and payment terms in compliance with WPS

8. Sales Targets and Performance Metrics: Required sales targets, KPIs, and performance evaluation criteria

9. Benefits and Allowances: Standard benefits including housing, transportation, and medical insurance

10. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Saudi Labor Law

11. Confidentiality and Non-Disclosure: Protection of company's confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities and customer solicitation

13. Termination: Grounds and procedures for contract termination, notice periods, and consequences

14. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law