Sales Employment Contract for Singapore

Sales Employment Contract Template for Singapore

A Sales Employment Contract under Singapore law is a legally binding agreement that establishes an employment relationship between a company and a sales professional. This document complies with Singapore's Employment Act and related legislation, incorporating specific provisions for commission-based compensation, sales targets, and performance metrics. It includes mandatory elements required by Singapore law such as CPF contributions, statutory leave entitlements, and working hours, while also addressing sales-specific aspects like territory assignments and client management.

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What is a Sales Employment Contract?

The Sales Employment Contract is essential for formalizing the employment relationship between companies and sales professionals in Singapore. This document is specifically designed to comply with Singapore's Employment Act and related legislation, while addressing the unique aspects of sales roles. It should be used when hiring any sales professional, from entry-level to senior positions, and includes crucial elements such as base salary, commission structures, sales targets, territory assignments, and performance metrics. The contract provides clarity on both statutory requirements and sales-specific obligations, protecting both employer and employee interests while ensuring compliance with Singapore's employment laws.

What sections should be included in a Sales Employment Contract?

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

2. Background: Context of employment relationship and role description

3. Definitions: Key terms used throughout the contract

4. Appointment and Duration: Job title, commencement date, and employment terms

5. Duties and Responsibilities: Detailed description of sales role and responsibilities

6. Compensation and Benefits: Base salary, commission structure, and benefits package

7. Working Hours and Leave: Standard working hours, overtime, annual leave, and other leave entitlements

8. Termination: Notice periods and grounds for termination

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

1. Non-Competition: Restrictions on working for competitors (for senior sales positions or when dealing with sensitive client relationships)

2. International Travel: Terms for international business travel when role involves overseas travel

3. Remote Working: Provisions for working from home or remote locations when flexible working arrangements are offered

4. Vehicle Allowance: Terms for company vehicle or transport allowance when role requires extensive travel

What schedules should be included in a Sales Employment Contract?

1. Schedule 1 - Commission Structure: Detailed breakdown of commission calculations and payment terms

2. Schedule 2 - Sales Targets: Specific KPIs and performance metrics

3. Schedule 3 - Territory Assignment: Defined sales territories or account assignments

4. Schedule 4 - Benefits Package: Detailed description of additional benefits

5. Appendix A - Company Policies: Reference to relevant company policies and procedures

6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations

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 | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Clauses
Industries

Employment Act: Primary legislation governing employment relationships in Singapore (Chapter 91), covering basic terms of employment, working hours, and employee rights

Employment Claims Act 2016: Framework for resolving salary-related disputes and other employment claims in Singapore

Central Provident Fund Act: Mandatory social security savings scheme that requires contributions from both employers and employees

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data by organizations

Work Injury Compensation Act: Provides framework for workers to claim compensation for workplace injuries and occupational diseases

Employment of Foreign Manpower Act: Regulates the employment of foreign workers in Singapore, including work pass requirements

Industrial Relations Act: Governs relations between employers and employees, including trade unions and collective bargaining

Retirement and Re-employment Act: Specifies minimum retirement age and re-employment obligations for employers

Workplace Safety and Health Act: Ensures safety, health, and welfare of persons at work in Singapore

Employment (Part-Time Employees) Regulations: Specific regulations governing part-time employment arrangements

MOM Commission Guidelines: Ministry of Manpower guidelines on commission-based payments and salary structures

TAFEP Guidelines: Tripartite Alliance guidelines ensuring fair and progressive employment practices

Mandatory Employment Terms: Essential contract elements including basic salary, working hours, leave entitlements, and CPF contributions

Sales-Specific Provisions: Special considerations for sales roles including commission structure, KPIs, territory allocation, and client management policies

Non-Compete and Confidentiality: Protective clauses regarding business secrets, client relationships, and post-employment competition restrictions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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