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Sales Employment Contract for Indonesia

Sales Employment Contract Template for Indonesia

This document is a comprehensive employment contract specifically designed for sales professionals in Indonesia, governed by Indonesian labor law, particularly Law No. 13 of 2003 on Manpower. It establishes the terms and conditions of employment while incorporating sales-specific elements such as commission structures, sales territories, and performance targets. The contract ensures compliance with local employment regulations while protecting both employer and employee interests in sales-related activities, including provisions for social security, working hours, and commission-based compensation structures.

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Sales Employment Contract

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What is a Sales Employment Contract?

The Sales Employment Contract is essential for formalizing employment relationships with sales professionals in Indonesia. It should be used when hiring any sales-focused employee, whether for field sales, inside sales, or business development roles. The contract combines standard employment terms required under Indonesian labor law with specific provisions for sales-based work, including commission structures, territory assignments, and performance expectations. This document ensures compliance with key Indonesian regulations, particularly Law No. 13 of 2003 on Manpower and related ministerial regulations governing wages and working conditions. It's crucial for protecting both employer and employee interests while establishing clear expectations for sales performance, compensation, and employment terms.

What sections should be included in a Sales Employment Contract?

1. Parties: Identification of the employer company and the sales employee, including their respective addresses and registration details

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including sales-specific terminology

4. Appointment and Duration: Terms of employment, position title, and duration (permanent or fixed-term)

5. Duties and Responsibilities: Detailed description of the sales role, territory, and key responsibilities

6. Working Hours and Location: Standard working hours, flexibility provisions, and primary work location

7. Compensation Structure: Base salary, commission structure, and other financial benefits

8. Sales Targets and Performance Metrics: Required sales targets, KPIs, and performance evaluation criteria

9. Benefits and Leave: Standard benefits, annual leave, sick leave, and other time-off provisions

10. Social Security and Insurance: BPJS participation and other mandatory insurance coverage

11. Confidentiality and Non-Disclosure: Protection of company information and trade secrets

12. Termination: Grounds for termination, notice periods, and severance provisions

13. Governing Law: Application of Indonesian law and jurisdiction

14. Dispute Resolution: Process for resolving employment-related disputes

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

1. Non-Compete Clause: Restrictions on working with competitors after employment ends - used for senior sales positions or when handling sensitive client information

2. Relocation Terms: Terms for potential relocation - included when the role may require geographic mobility

3. Company Vehicle Policy: Rules and terms for company vehicle usage - included when a vehicle is provided

4. Remote Work Provisions: Guidelines for remote work arrangements - included when flexible working locations are permitted

5. International Travel: Terms for international business travel - included for roles covering international territories

6. Training and Development: Specific training requirements and professional development terms - included for roles with mandatory certification requirements

7. Client Transition: Process for handling client relationships upon termination - included for relationship-based sales roles

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: Detailed description and/or map of assigned sales territory

3. Schedule C - Product Portfolio: List of products/services the employee is authorized to sell

4. Schedule D - Sales Targets: Specific quarterly/annual sales targets and bonus thresholds

5. Schedule E - Benefits Package: Detailed description of all benefits and eligibility criteria

6. Appendix 1 - Expense Policy: Guidelines for reimbursable expenses and claim procedures

7. Appendix 2 - Company Policies: Reference to relevant company policies applicable to sales staff

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

Indonesia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
































Clauses



































Relevant Industries

Retail

Technology

Pharmaceuticals

Financial Services

Manufacturing

Consumer Goods

Telecommunications

Real Estate

Insurance

Automotive

Industrial Equipment

Software and Services

Medical Devices

Construction Materials

Electronics

Relevant Teams

Sales

Business Development

Commercial

Account Management

Revenue

Customer Success

Product Sales

Channel Sales

Enterprise Sales

Inside Sales

Field Sales

Regional Sales

Direct Sales

Strategic Accounts

Sales Operations

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Territory Sales Manager

Inside Sales Representative

Senior Sales Executive

Key Account Manager

Regional Sales Director

Sales Consultant

Product Sales Specialist

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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