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Salesman Contract Of Employment for Saudi Arabia

Salesman Contract Of Employment Template for Saudi Arabia

A comprehensive employment agreement governed by Saudi Arabian law, specifically designed for sales professionals. This contract establishes the terms and conditions of employment for salespeople, including basic salary, commission structures, sales territories, and performance targets. It ensures compliance with Saudi Labor Law and recent reforms while incorporating specific provisions for sales-based employment, including commission calculations, target-setting mechanisms, and territory assignments. The document addresses both the standard employment requirements under Saudi law and the unique aspects of sales roles, including customer relationship management and performance metrics.

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What is a Salesman Contract Of Employment?

The Salesman Contract Of Employment is a specialized employment agreement designed for use in Saudi Arabia when hiring sales professionals. It combines standard employment terms required under Saudi Labor Law with specific provisions for sales-based roles. This document is essential when engaging sales professionals in Saudi Arabia, whether for domestic or international companies operating in the Kingdom. The contract addresses crucial elements such as basic compensation, commission structures, sales territories, performance targets, and protection of company interests through non-compete and confidentiality clauses. It ensures compliance with mandatory requirements including Wage Protection System (WPS) regulations, Saudization requirements, and social insurance obligations while providing flexibility for various sales roles and compensation models. This template is regularly updated to reflect changes in Saudi labor regulations and market practices.

What sections should be included in a Salesman Contract Of Employment?

1. Parties: Identification of the employer company and the salesman employee, including full legal names and addresses

2. Background: Brief context about the company's business and the purpose of hiring the salesman

3. Definitions: Key terms used throughout the contract, including 'Territory', 'Products', 'Commission', 'Targets', etc.

4. Appointment and Term: Terms of employment, position title, and duration (fixed-term or unlimited)

5. Duties and Responsibilities: Detailed description of the salesman's roles, responsibilities, and performance expectations

6. Working Hours and Location: Specified working hours, territory coverage, and base location requirements

7. Compensation Structure: Basic salary, commission rates, bonus structures, and payment terms in compliance with WPS

8. Sales Targets and Performance Metrics: Required sales targets, KPIs, and performance evaluation criteria

9. Benefits and Allowances: Standard benefits including housing, transportation, and medical insurance

10. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Saudi Labor Law

11. Confidentiality and Non-Disclosure: Protection of company's confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities and customer solicitation

13. Termination: Grounds and procedures for contract termination, notice periods, and consequences

14. End of Service Benefits: Calculation and payment of end of service benefits as per Saudi Labor Law

What sections are optional to include in a Salesman Contract Of Employment?

1. Product Training: Specific requirements for product knowledge training, used when extensive product training is required

2. Sales Team Integration: Guidelines for working within a sales team, needed for roles involving team collaboration

3. Vehicle and Equipment: Terms regarding company-provided vehicles or equipment, included when applicable

4. International Travel: Terms for international business travel, included for roles requiring cross-border activities

5. Customer Relationship Management: Specific requirements for using CRM systems, included when company uses specific sales management tools

6. Sales Reports and Documentation: Detailed reporting requirements, included for roles with complex reporting needs

7. Social Media and Online Presence: Guidelines for professional social media use, included when social selling is part of the role

What schedules should be included in a Salesman Contract Of Employment?

1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, calculations, and payment terms

2. Schedule 2 - Sales Territories: Detailed description of assigned sales territories and any exclusivity provisions

3. Schedule 3 - Sales Targets: Specific sales targets and quotas with timeframes

4. Schedule 4 - Product List: List of products/services the salesman is authorized to sell

5. Schedule 5 - Expense Policy: Detailed policy on reimbursable expenses and claim procedures

6. Appendix A - Code of Conduct: Company's code of conduct and ethical sales practices

7. Appendix B - Reporting Templates: Standard templates for sales reports and documentation

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

Saudi Arabia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions




































Clauses





































Relevant Industries

Retail

Technology

Manufacturing

Pharmaceutical

Automotive

Consumer Goods

Industrial Equipment

Real Estate

Financial Services

Telecommunications

Healthcare

Construction Materials

Professional Services

Energy

Electronics

Relevant Teams

Sales

Business Development

Account Management

Customer Success

Revenue Operations

Commercial Operations

Product Marketing

Channel Management

Sales Operations

Sales Support

Sales Administration

Customer Relations

Business Operations

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Sales Manager

Territory Sales Manager

Key Account Manager

Inside Sales Representative

Outside Sales Representative

Sales Consultant

Regional Sales Director

Product Sales Specialist

Technical Sales Engineer

Sales Development Representative

Channel Sales Manager

Export Sales Manager

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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