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Independent Sales Contractor Agreement for the United Kingdom

Independent Sales Contractor Agreement Template for England and Wales

A legally binding agreement governed by English and Welsh law that establishes a commercial relationship between a company and an independent sales contractor. The agreement defines the terms of engagement, commission structure, responsibilities, and obligations while maintaining the contractor's self-employed status. It includes provisions for territory allocation, performance targets, and compliance with relevant regulations including Commercial Agents Regulations 1993.

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What is a Independent Sales Contractor Agreement?

The Independent Sales Contractor Agreement is designed for businesses operating under English and Welsh law who wish to engage self-employed sales professionals without creating an employment relationship. This agreement is particularly relevant when companies need flexible sales resources without the obligations of employment. It covers essential elements including commission structures, sales territories, performance expectations, and compliance with relevant legislation such as the Commercial Agents Regulations 1993 and IR35. The document protects both parties' interests while maintaining clear independent contractor status.

What sections should be included in a Independent Sales Contractor Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of services

5. Duties and Obligations: Responsibilities of the contractor

6. Commission Structure: Payment terms and commission calculations

7. Term and Termination: Duration and termination provisions

8. Independent Contractor Status: Confirmation of self-employed status

9. Confidentiality: Protection of confidential information

10. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Independent Sales Contractor Agreement?

1. Non-Compete: Restrictions on competing activities - include when protecting business interests from competition

2. Intellectual Property: Ownership and use of IP rights - include when IP is created or used during service provision

3. Insurance: Required insurance coverage - include when specific insurance requirements exist

4. Data Protection: GDPR compliance obligations - include when personal data is processed

What schedules should be included in a Independent Sales Contractor Agreement?

1. Commission Schedule: Detailed commission rates and calculation methods

2. Territory Schedule: Defined geographical areas for sales activities

3. Products Schedule: List of products/services to be sold

4. Performance Targets: Specific sales targets and metrics

5. Reporting Requirements: Format and frequency of sales reports

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





























Clauses






























Industries

Commercial Agents (Council Directive) Regulations 1993: Key legislation governing commercial agency relationships, covering rights, duties, and termination provisions. Essential if the contractor qualifies as a commercial agent.

Supply of Goods and Services Act 1982: Governs service quality standards and includes implied terms regarding reasonable care and skill in service provision.

Employment Rights Act 1996: Critical for establishing clear contractor status and avoiding employment misclassification risks.

Competition Act 1998: Regulates territorial restrictions and exclusivity arrangements, ensuring compliance with competition law.

IR35 Legislation: Tax legislation determining contractor status and ensuring genuine self-employed status for tax purposes.

GDPR and Data Protection Act 2018: Governs the handling and protection of personal and customer data in business relationships.

Consumer Rights Act 2015: Relevant when dealing with consumers, establishing consumer protection requirements and obligations.

Bribery Act 2010: Sets out anti-corruption provisions and compliance requirements for business relationships.

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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