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Sales Representative Contract Template for England and Wales

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Key Requirements PROMPT example:

Sales Representative Contract

"I need a Sales Representative Contract for my tech company, covering a sales rep who will work across Northern England with a 5% commission structure and non-compete restrictions for 12 months post-termination, starting March 2025."

Document background
The Sales Representative Contract is essential for businesses operating in England and Wales that engage individuals or entities to promote and sell their products or services. This agreement is particularly important as it defines the commercial relationship, protecting both the principal company and the representative by clearly outlining commission structures, sales territories, and performance expectations. The contract ensures compliance with relevant UK legislation, including the Commercial Agents (Council Directive) Regulations 1993 and Employment Rights Act 1996, while providing clear guidelines for the working relationship.
Suggested Sections

1. Parties: Identification and details of the company and sales representative

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Territory: Scope of appointment and geographical area of operation

5. Duties and Obligations: Representative's responsibilities and performance requirements

6. Commission Structure: Compensation details including base pay and commission calculations

7. Term and Termination: Duration of agreement and termination provisions

8. Confidentiality: Protection of sensitive business information

Optional Sections

1. Non-Compete Provisions: Restrictions on competitive activities - use when protecting market share in specific territories

2. Equipment and Resources: Provision of tools and materials - use when company provides specific resources

3. Training Requirements: Mandatory training and development - use when specific qualifications or training are needed

4. Performance Targets: Specific sales goals and metrics - use when implementing performance-based compensation

Suggested Schedules

1. Commission Schedule: Detailed breakdown of commission rates and calculations

2. Territory Map: Geographical representation of assigned sales territory

3. Product List: List of products/services the representative is authorized to sell

4. Sales Targets: Specific performance metrics and goals

5. Expense Policy: Guidelines for reimbursable expenses

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




















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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation governing employment rights and status, crucial for determining the representative's employment classification and basic rights

Commercial Agents Regulations 1993: Specific regulations protecting commercial agents, including rights to commission and termination compensation

Agency Workers Regulations 2010: Legislation ensuring equal treatment for agency workers, may be relevant depending on employment structure

National Minimum Wage Act 1998: Ensures minimum wage compliance for sales representatives if classified as workers or employees

Working Time Regulations 1998: Governs working hours, rest periods, and holiday entitlements

UK GDPR and Data Protection Act 2018: Regulates the handling of personal data and privacy requirements in the business relationship

Competition Act 1998: Governs anti-competitive practices and market behavior, relevant for territory and customer restrictions

Trade Secrets Regulations 2018: Protects confidential business information and trade secrets

Health and Safety at Work Act 1974: Sets out employer obligations for ensuring workplace safety and health

Equality Act 2010: Prohibits discrimination and ensures equal treatment in all aspects of employment

Income Tax (Earnings and Pensions) Act 2003: Governs taxation of earnings and commission payments

IR35 Legislation: Tax legislation affecting contractors and determining employment status for tax purposes

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts and limits on liability exclusions

Copyright, Designs and Patents Act 1988: Protects intellectual property rights in sales materials and company assets

Trade Marks Act 1994: Governs the use of company trademarks and branding by sales representatives

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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