Sales Manager Employment Contract (Commission Structure)
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 of employment.
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 staff.
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.