Sales Manager Employment Contract (Commission Structure) Template

Sales Manager Employment Contract (Commission Structure)

EMP.SM.02

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.

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. However, the clause prevents such PILON payments being made "tax free" and prevents the negotiating benefits that brings.

This contract is in open format. Fields should be completed where indicated. In this document, options and alternatives appear in blue font. The document is designed so that it will make sense with or without the optional clauses. Tailor the contract by removing all phrases and clauses which are not relevant to your new employee. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.
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