Sales Representative Employment Contract

This Sales Representative Employment Contract is intended for Sales Representatives with responsibility for a particular sales territory and includes the option to describe an “Assigned Sales Territory”. For a Sales Manager, see the Sales Manager Employment Contracts in this collection.

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.

Use this contract where a sales territory is assigned

The contract is designed for a sales role with responsibility for a defined territory and includes provisions commonly needed for field-based sales work and customer-facing duties.

Restrictive covenants schedule

The contract includes a 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 required to show a signed copy of the Restrictive Covenants Schedule to future employers so that prospective employers are fully aware of the contractually agreed limitations on “poaching” customers, transactions and staff.

The Schedule contains three possible restrictive covenants:

• Non-competition
• Non-solicitation of customers
• Non-solicitation of employees

Restrictive covenants must be no wider than is necessary to protect your “legitimate business interests”. Consider each restrictive covenant carefully and remove any that are not relevant to your business and the employee in question. For those remaining, insert time limits and geographical limits that are appropriate and reasonable to the nature of your business. 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.

Benefits, equipment and working practices

The contract also includes provisions relating to:

• Company cars or car allowance (with a reference to the Employer’s company car policy)
• Provision of a laptop and a company credit card
• Bonus or commission scheme
• A “duty of care” while visiting clients

For tax issues relating to employee benefits, refer to the HM Revenue & Customs website.

Termination and payment in lieu of notice

This Sales Representative Employment Contract includes a payment in lieu of notice (a “PILON”) on termination, rather than having the employee work out their notice period either at home on garden leave or in the workplace. The payment in lieu clause enables the employer to require the employee not to work during their notice period, whilst retaining the validity of confidentiality and restrictive covenants.

Update note

The Pension Act 2014 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.

Sales Representative Employment Contract is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.