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Salesperson Employment Contract Template for Canada

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Key Requirements PROMPT example:

Salesperson Employment Contract

"I need a Salesperson Employment Contract for a senior software sales executive position starting March 2025, including provisions for both Canadian and US territory coverage, with a base salary plus tiered commission structure and specific clauses for remote work arrangements."

Document background
The Salesperson Employment Contract is essential for formalizing the employment relationship between companies and their sales staff in Canada. This document should be used when hiring any commission-based sales professional, whether entry-level or senior, and can be customized for various industries and sales roles. It includes crucial elements such as compensation structure (base salary and commission), performance metrics, territory assignments, and customer relationship management protocols. The contract ensures compliance with Canadian federal and provincial employment laws while protecting the employer's interests through confidentiality and non-competition clauses. It's particularly important for roles involving commission-based compensation, customer relationship management, and defined sales territories.
Suggested Sections

1. Parties: Identification of the employer and employee with 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', 'Quota'

4. Position and Duties: Detailed description of the role, responsibilities, and reporting structure

5. Term and Hours of Work: Employment duration (if fixed-term) and expected working hours

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

7. Sales Targets and Quotas: Expected performance metrics and sales goals

8. Territory and Customer Assignment: Definition of sales territory and any exclusive customer relationships

9. Benefits and Expenses: Health benefits, expense reimbursement policies, and car allowance if applicable

10. Confidentiality: Protection of company and customer confidential information

11. Intellectual Property: Ownership of customer relationships, sales materials, and work product

12. Non-Competition and Non-Solicitation: Post-employment restrictions on competitive activities

13. Termination: Conditions for termination, notice periods, and severance terms

14. Governing Law: Specification of applicable Canadian provincial law

15. General Provisions: Standard boilerplate clauses including amendments, notices, and entire agreement

Optional Sections

1. Probationary Period: Include when the employer wants to establish an initial evaluation period

2. Remote Work Provisions: Include for positions allowing work from home or hybrid arrangements

3. Team Leadership Responsibilities: Include when the salesperson may have future team leadership duties

4. International Travel: Include when role requires cross-border travel

5. Stock Options or Equity: Include when offering company shares or equity compensation

6. Override Commissions: Include when salesperson may earn commissions from other sales team members

7. Client Development Budget: Include when providing specific budget for client entertainment/development

8. Training Requirements: Include when specific ongoing training or certification is required

9. Social Media Policy: Include when role involves social media for sales activities

Suggested Schedules

1. Schedule A - Compensation Plan: Detailed commission structures, calculation methods, payment timing, and examples

2. Schedule B - Sales Territory: Maps, specific geographic boundaries, or customer account listings

3. Schedule C - Product List: Current products/services and associated commission rates

4. Schedule D - Sales Targets: Specific quarterly/annual quotas and bonus thresholds

5. Schedule E - Expense Policy: Detailed policies for travel, entertainment, and business expense reimbursement

6. Schedule F - Benefits Summary: Detailed description of all benefits and eligibility requirements

7. Appendix 1 - Company Policies: Reference to relevant company policies including sales practices and ethics

8. Appendix 2 - Reporting Templates: Standard forms for sales reporting and expense claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses


































Relevant Industries

Technology

Manufacturing

Professional Services

Retail

Wholesale Distribution

Financial Services

Telecommunications

Pharmaceutical

Real Estate

Industrial Equipment

Consumer Goods

Software and SaaS

Healthcare

Automotive

Relevant Teams

Sales

Business Development

Account Management

Commercial

Revenue Operations

Customer Success

Marketing

Legal

Human Resources

Finance

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Regional Sales Director

Territory Manager

Inside Sales Representative

Outside Sales Representative

Senior Sales Executive

Key Account Manager

Sales Solution Specialist

Channel Sales Manager

Enterprise Sales Executive

Junior Sales Representative

Sales Development Representative

Industries









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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