Sales Representative Employment Contract

Statutory Sick Pay (SSP) is now payable from the first full day of sickness absence. This contract has been updated to reflect this change.

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”.

The matching offer letter is the Sales Representative Employment Offer Letter.

This Employment Contract covers the requirements of a Standard Form Section One Statement 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.

For a sales manager role, employers should use the relevant Sales Manager Employment Contract instead.

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; and
• 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; and
• 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, or “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, while retaining the validity of confidentiality and restrictive covenants.

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