The Salesperson Employment Contract is essential for businesses operating in South Africa that employ sales professionals. This document serves as a legally binding agreement that outlines the employment relationship between a company and its sales staff, ensuring compliance with South African employment legislation including the Basic Conditions of Employment Act, Labour Relations Act, and other relevant laws. It is specifically designed to address the unique aspects of sales roles, including commission structures, performance metrics, and territory management, while providing clear guidelines on employment terms, confidentiality, and post-employment obligations. The contract should be used when hiring new sales personnel or updating terms for existing sales staff, and it includes comprehensive provisions for both fixed and performance-based compensation, sales targets, and customer relationship management.
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1. Parties: Identification of the employer and employee with full legal names and details
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Position and Duties: Detailed description of the salesperson role, responsibilities, and reporting structure
5. Duration of Employment: Terms regarding employment period, whether fixed-term or permanent
6. Probation Period: Details of the initial probationary period and performance assessment
7. Remuneration: Base salary, commission structure, and payment terms
8. Working Hours: Standard working hours, flexibility requirements, and overtime provisions
9. Leave Entitlement: Annual, sick, family responsibility, and other statutory leave provisions
10. Performance Expectations: Sales targets, KPIs, and performance review procedures
11. Confidentiality: Protection of company and customer confidential information
12. Intellectual Property: Ownership of work product and customer relationships
13. Restraint of Trade: Non-compete and non-solicitation provisions
14. Termination: Conditions and procedures for termination of employment
15. Dispute Resolution: Process for resolving employment-related disputes
16. General Provisions: Standard boilerplate clauses including governing law and amendments
1. Company Vehicle: Terms for provision and use of a company vehicle, applicable when the role includes a company car benefit
2. International Travel: Provisions for international travel requirements and compensation, needed for roles with international territories
3. Work From Home: Remote work provisions and requirements, applicable for hybrid or remote sales positions
4. Team Leadership: Additional responsibilities and compensation for team leadership roles, included when the salesperson has management duties
5. Electronic Equipment: Provisions regarding company-provided devices and equipment, needed when specific tools are provided
6. Medical Aid and Benefits: Details of additional medical benefits beyond statutory requirements, if offered
7. Share Options: Terms of any share option or equity participation schemes, if applicable
8. Relocation: Relocation assistance and terms, if position requires relocation
1. Schedule A - Commission Structure: Detailed breakdown of commission calculations, thresholds, and payment terms
2. Schedule B - Sales Targets: Specific sales targets and measurement periods
3. Schedule C - Territory Assignment: Definition of geographic or account territory boundaries
4. Schedule D - Product Portfolio: List of products/services the salesperson is authorized to sell
5. Schedule E - Expense Policy: Guidelines for business expense claims and reimbursement
6. Schedule F - Company Policies: Referenced company policies including code of conduct and sales practices
7. Appendix 1 - Benefits Summary: Summary of all employment benefits and eligibility criteria
8. Appendix 2 - Reporting Templates: Standard templates for sales reporting and performance tracking
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