This Sales Manager Employment Contract (Commission Structure) is intended
for use for sales managers with management responsibility for a particular
sales territory where a car/car allowance is part of the benefits package
and clauses covering commission and/or bonus structure are required.
This Employment Contract covers the requirements of a
Standard Form Section One Statement. This contract complies with these
requirements and must be provided to the employee or worker by day one
The Pension Act 2014 has introduced a new state pension for people reaching
state pension age on or after 6 April 2016, replacing the previous basic
state pension and additional state pension and ending contracting out for
defined-benefit schemes. This template has been updated accordingly with
the removal of the clause referring to the contracting out certificate.
This contract has been updated to include a new Schedule of Restrictive
Covenants providing enhanced protection for the employer; the restrictive
covenants are designed to protect the employer’s legitimate business
interests, for example, confidential customer information. Employees are
contracted to show a signed copy of the Restrictive Covenants Schedule to
future employers so that those prospective employers are fully aware of the
contractually agreed limitations on "poaching" customers, transactions and
The Schedule to this contract contains three possible restrictive
covenants; non-competition, non-solicitation of customers and
non-solicitation of employees. Restrictive covenants must be no wider than
is necessary to protect your “legitimate business interests”. Please
consider each restrictive covenant carefully, and remove any that are not
relevant to your particular business and to the employee in question. For
those remaining, insert time limits and geographical limits that are
appropriate and reasonable to the nature of your business. Please note that
if the schedule is tailored to match the particular employee it is more
likely to be deemed reasonable and therefore more likely to be enforceable.
In addition, this employment contract includes clauses relating to company
cars or car allowance, and the provision of a laptop and company credit
card. See HM Revenue & Customs (HMRC) website for further details of
tax issues related to employee benefits. The clause on commission and
bonuses make reference to the employer’s own policies/schemes.
This Sales Manager Employment Contract (Commission Structure) includes a
payment in lieu of notice (a ‘PILON’) on termination, rather than having
the Manager work out his or her notice period either at home on garden
leave or in the workplace. The payment in lieu clause enables the employer
to require the sales manager not to work during his notice period, whilst
retaining the validity of employee covenants.