Salesperson Employment Contract Template for Saudi Arabia

This Salesperson Employment Contract is designed for use when hiring sales professionals in Saudi Arabia, whether for B2B or B2C sales roles. The document complies with Saudi Labor Law (Royal Decree No. M/51) and related ministerial decisions, incorporating mandatory employment provisions while addressing sales-specific elements such as commission structures, sales territories, and performance targets. It includes essential protections for both employer and employee, covering areas such as confidentiality, non-competition, and client relationships. The contract is particularly relevant for companies establishing or expanding their sales force in Saudi Arabia, ensuring proper documentation of employment terms while meeting local regulatory requirements including Saudization quotas where applicable.

1. Parties: Identification of the employer company and the employee with full legal names and addresses

2. Background: Brief context about the employment relationship and purpose of the agreement

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

4. Appointment and Term: Details of the position, effective date, and duration (fixed-term or unlimited)

5. Duties and Responsibilities: Detailed description of the salesperson's role, reporting structure, and key responsibilities

6. Compensation: Base salary, commission structure, payment terms, and calculation methods

7. Sales Targets and Territory: Defined sales goals, geographic or client territory assignments

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

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

10. Confidentiality and Non-Disclosure: Protection of company confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities and client solicitation

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

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

14. Governing Law: Confirmation of Saudi Law application and dispute resolution procedures