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Sales Employment Contract for Canada

Sales Employment Contract Template for Canada

A comprehensive employment agreement governed by Canadian law, specifically designed for sales professionals. This contract establishes the terms and conditions of employment, including base compensation, commission structures, sales territories, and performance expectations. It incorporates essential provisions required by Canadian federal and provincial employment standards, while addressing specific sales-related elements such as quota requirements, client relationship management, and territory rights. The document includes protective clauses for both employer and employee, covering confidentiality, intellectual property, and post-employment obligations, all aligned with Canadian employment law requirements.

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What is a Sales Employment Contract?

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.

What sections should be included in a Sales Employment Contract?

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

What sections are optional to include in a Sales Employment Contract?

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

What schedules should be included in a Sales Employment Contract?

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

Alex Denne

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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
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

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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