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.
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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
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
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
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
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