Sales Representative Employment Contract Template

Sales Representative Employment Contract


This Sales Representative Employment Contract is intended for use 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 folder.

This employment contract has a General Data Protection Regulation (GDPR)-compliant data processing clause. After 25 May 2018, employers must use this clause, as employers will not be able to rely on the existing generic consent clauses.

This 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 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 Contract includes clauses relating to company cars or car allowance (and a reference to the Employer’s own company car policy), the provision of a laptop and company credit card, a bonus/commission scheme and a ‘duty of care’ while visiting clients. Please go to the HM Revenue & Customs website for further details of tax issues related to employee benefits.

This Sales Representative Employment Contract includes a payment in lieu of notice (a ‘PILON’) on termination, rather than having the Employee 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 employee not to work during his notice period, whilst retaining the validity of confidentiality and restrictive covenants. However, the clause prevents such PILON payments being made "tax free" and prevents the negotiating benefits that brings.

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 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.

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