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Sales Employment Contract for Germany

Sales Employment Contract Template for Germany

This document is a comprehensive employment contract specifically designed for sales professionals working in Germany, compliant with German labor law and commercial code (Handelsgesetzbuch - HGB). It outlines the terms and conditions of employment, including base salary, commission structures, sales targets, territory assignments, and performance metrics. The contract incorporates mandatory German employment provisions regarding working hours, vacation entitlement, notice periods, and social security requirements, while also addressing sales-specific elements such as client relationships, territory management, and commission calculations.

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Sales Employment Contract

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What is a Sales Employment Contract?

The Sales Employment Contract is a specialized employment agreement designed for use in the German market, incorporating both standard employment terms and sales-specific provisions. This document should be used when hiring sales professionals in Germany, whether for field sales, inside sales, or business development roles. It includes comprehensive coverage of commission structures, sales territories, and performance metrics while ensuring compliance with German employment law requirements. The contract addresses key aspects such as remuneration, working hours, and benefits, as well as sales-specific elements like client management and target setting. It's particularly important that this document maintains compliance with German labor regulations, including the Commercial Code (HGB) provisions regarding sales representatives and the Civil Code (BGB) employment provisions.

What sections should be included in a Sales Employment Contract?

1. Parties: Identification of the employer company and the sales employee with full legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract, including sales-specific terminology

4. Position and Duties: Detailed description of the sales role, responsibilities, reporting lines, and sales territory

5. Term and Commencement: Start date and duration of employment (indefinite or fixed-term if applicable)

6. Probationary Period: Length and terms of the initial probationary period

7. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location

8. Remuneration: Base salary, commission structure, payment intervals, and bonus schemes

9. Sales Targets and Performance Metrics: Definition of sales goals, KPIs, and performance evaluation criteria

10. Benefits and Expenses: Company benefits, expense reimbursement policy, and travel allowances

11. Vacation and Leave: Annual leave entitlement, public holidays, and other leave provisions

12. Confidentiality: Protection of company secrets, customer information, and confidential data

13. Data Protection: GDPR compliance and handling of personal data

14. Company Property: Rules regarding company equipment, vehicles, and resources

15. Termination: Notice periods, grounds for termination, and handover requirements

16. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Sales Employment Contract?

1. Non-Competition: Post-employment competition restrictions, used for senior sales roles or when dealing with sensitive client relationships

2. Stock Options/Share Schemes: Details of any equity participation programs, typically for senior sales positions

3. Working from Home: Specific provisions for remote work arrangements, if applicable

4. International Travel: Additional terms for roles requiring international sales activities

5. Training and Development: Specific provisions for required training programs and professional development

6. Company Car: Terms of company car provision and usage, if applicable

7. Inventions and Intellectual Property: For sales roles involving product development or technical solutions

8. Garden Leave: Provisions for placing employee on paid leave during notice period, typically for senior roles

What schedules should be included in a Sales Employment Contract?

1. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

2. Sales Territory: Detailed description and/or maps of assigned sales territory

3. Benefits Package: Comprehensive list of benefits and applicable terms

4. Company Policies: Reference to relevant company policies including sales, expense, and compliance policies

5. Sales Targets: Detailed quarterly/annual sales targets and calculation methodologies

6. Expense Policy: Detailed guidelines for business expense claims and reimbursement procedures

7. Company Car Policy: Details of company car scheme if applicable

8. Data Protection Notice: Detailed information about personal data processing in compliance with GDPR

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions












































Clauses









































Relevant Industries

Technology

Manufacturing

Retail

Financial Services

Professional Services

Healthcare

Consumer Goods

Industrial Equipment

Telecommunications

Automotive

Construction

Software

Pharmaceuticals

Energy

Real Estate

Relevant Teams

Sales

Business Development

Account Management

Commercial

Revenue

Customer Success

Business Operations

Field Operations

Direct Sales

Channel Sales

Inside Sales

Enterprise Sales

Regional Sales

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Regional Sales Director

Key Account Manager

Inside Sales Representative

Territory Sales Manager

Sales Consultant

Technical Sales Specialist

Senior Sales Executive

Sales Development Representative

Channel Sales Manager

Enterprise Sales Executive

Junior Sales Representative

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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