The Sales Employment Contract is a specialized employment agreement designed for use in the Canadian business environment, incorporating both standard employment terms and sales-specific provisions. This document should be used when hiring sales professionals in any capacity where commission-based compensation and specific sales territories or accounts are involved. The contract addresses key areas including base salary, commission structures, performance metrics, territory assignments, and client relationship management, while ensuring compliance with Canadian federal and provincial employment standards. It is particularly important for protecting both employer and employee interests in sales relationships, where compensation often includes variable components and where customer relationships and confidential information require specific protections. The document includes necessary provisions for non-competition and non-solicitation, aligned with Canadian enforceability standards, and can be customized for different provinces' specific requirements.
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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 specific sales-related terminology
4. Position and Duties: Detailed description of the sales role, responsibilities, reporting structure, and performance expectations
5. Term of Employment: Start date, term (if fixed), and probationary period details
6. Compensation Structure: Base salary, commission framework, bonus potential, and payment schedules
7. Benefits and Expenses: Health benefits, insurance, expense reimbursement policies, and vehicle allowance if applicable
8. Working Hours and Location: Expected working hours, flexibility arrangements, and primary work location
9. Sales Targets and Performance Metrics: Required sales quotas, KPIs, and performance evaluation criteria
10. Confidentiality: Protection of company confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation during and after employment
12. Intellectual Property: Ownership of work product, client lists, and sales materials
13. Termination: Grounds for termination, notice periods, and severance provisions
14. Governing Law: Specification of applicable Canadian provincial law
15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability
1. Remote Work Provisions: Specific terms for remote work arrangements, including equipment, expenses, and expectations
2. International Travel: Terms related to international business travel, including compensation and insurance
3. Vehicle Usage: Terms regarding company vehicle use or personal vehicle use for business purposes
4. Stock Options or Equity: Terms for any equity-based compensation or stock option plans
5. Training and Development: Specific requirements for ongoing training and professional development
6. Team Management: Additional responsibilities and compensation for managing other sales staff
7. Relocation Terms: Terms related to potential relocation requirements and compensation
8. Dual Employment: Terms addressing employment across multiple corporate entities if applicable
1. Schedule A - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule B - Sales Territory: Definition of assigned sales territory or market segment
3. Schedule C - Performance Metrics: Detailed KPIs, quotas, and measurement methodologies
4. Schedule D - Benefit Plans: Details of applicable benefit plans and eligibility criteria
5. Schedule E - Expense Policy: Detailed policy for business expense reimbursement
6. Schedule F - Sales Tools and Resources: List of provided sales tools, software, and resources
7. Appendix 1 - Confidential Information: Detailed description of what constitutes confidential information
8. Appendix 2 - Approved Outside Activities: List of pre-approved external business activities if any
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Technology
Manufacturing
Professional Services
Financial Services
Healthcare
Telecommunications
Real Estate
Automotive
Consumer Goods
Industrial Equipment
Software and SaaS
Pharmaceuticals
Construction
Energy
Relevant Teams
Sales
Business Development
Account Management
Human Resources
Legal
Finance
Operations
Commercial
Channel Partners
Customer Success
Relevant Roles
Sales Representative
Account Executive
Business Development Manager
Sales Manager
Regional Sales Director
Territory Manager
Inside Sales Representative
Outside Sales Representative
Sales Consultant
Senior Sales Executive
Key Account Manager
Sales Development Representative
Channel Sales Manager
Enterprise Sales Executive
Junior Sales Representative
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