The Salesman Contract of Employment is essential for businesses operating in the United States that employ sales professionals. This document is crucial when hiring individuals whose primary responsibility is generating revenue through direct sales activities. It addresses specific aspects of sales employment including commission structures, territory assignments, and performance metrics while ensuring compliance with federal and state employment laws. The contract is particularly important for protecting intellectual property, maintaining client relationships, and establishing clear expectations for both parties.
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1. Parties: Identification of 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 contract including 'Commission', 'Territory', 'Products', etc.
4. Position and Duties: Detailed description of role, responsibilities, and reporting structure
5. Compensation: Base salary, commission structure, and payment terms
6. Term and Termination: Duration of employment and conditions for termination
7. Working Hours and Location: Expected working hours, travel requirements, and primary work location
8. Confidentiality: Protection of company's confidential information
1. Non-Compete: Restrictions on working for competitors (include only where permitted by state law)
2. Benefits: Healthcare, retirement, and other benefits package details
3. Expense Reimbursement: Policy on business expenses and reimbursement procedures
4. Performance Metrics: Specific sales targets and evaluation criteria for performance assessment
1. Schedule A - Commission Structure: Detailed breakdown of commission calculations and examples
2. Schedule B - Territory Map: Geographic definition of sales territory and coverage area
3. Schedule C - Product List: List of products/services the salesperson is authorized to sell
4. Schedule D - Expense Policy: Detailed policy on allowable expenses and submission procedures
5. Schedule E - Company Policies: Reference to relevant company policies and procedures
Relevant legal definitions
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