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Independent Sales Rep Agreement for Australia

Independent Sales Rep Agreement Template for Australia

An Independent Sales Rep Agreement is a comprehensive legal document used in Australia to establish and govern the relationship between a company and an independent sales representative. The agreement outlines the terms under which the representative will promote and sell the company's products or services, including territory rights, commission structures, and performance expectations. It ensures compliance with Australian independent contractor laws, particularly the Independent Contractors Act 2006, while clearly establishing the contractor status of the relationship to avoid misclassification under employment law.

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What is a Independent Sales Rep Agreement?

This Independent Sales Rep Agreement is designed for use in the Australian business context where companies seek to engage independent sales representatives to promote and sell their products or services. The document is essential when establishing a formal contractor relationship with sales representatives who will operate independently rather than as employees. It includes crucial provisions required under Australian law, particularly addressing requirements of the Independent Contractors Act 2006 and related legislation. The agreement covers key aspects such as territory allocation, commission structures, performance expectations, and compliance requirements while ensuring proper classification of the contractor relationship. It's particularly relevant for businesses expanding their sales reach without increasing their direct employee headcount, and includes provisions for protecting intellectual property, maintaining confidentiality, and establishing clear operational parameters.

What sections should be included in a Independent Sales Rep Agreement?

1. Parties: Identifies the contracting parties - the company and the independent sales representative

2. Background: Outlines the context of the agreement, including the company's business and its desire to engage independent sales representatives

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the appointment of the sales representative and defines their territory/market

5. Independent Contractor Status: Clearly establishes the independent contractor relationship and disclaims any employment relationship

6. Term and Termination: Specifies the duration of the agreement and conditions for termination

7. Duties and Responsibilities: Details the sales representative's obligations and performance expectations

8. Commission Structure: Outlines the payment terms, commission rates, and calculation methods

9. Intellectual Property: Addresses ownership and usage of trademarks, logos, and other IP

10. Confidentiality: Defines confidential information and obligations to maintain confidentiality

11. Non-Competition: Specifies restrictions on competing activities during and after the agreement

12. Reporting Requirements: Details the sales reporting obligations and procedures

13. Insurance and Liability: Specifies insurance requirements and allocation of liability

14. General Provisions: Contains standard boilerplate clauses including governing law, notices, and amendment procedures

What sections are optional to include in a Independent Sales Rep Agreement?

1. Product Training: Include when specific product training is required and provided by the company

2. Marketing Support: Include when the company provides marketing materials or support

3. Minimum Performance Requirements: Include when setting specific sales targets or quotas

4. Customer Support Obligations: Include when the rep has post-sale support responsibilities

5. Expense Reimbursement: Include when certain expenses are reimbursable by the company

6. Sub-contractor Rights: Include when the rep may engage sub-contractors

7. Data Protection: Include when handling significant customer data or personal information

8. International Sales: Include when the territory includes international markets

What schedules should be included in a Independent Sales Rep Agreement?

1. Schedule 1 - Territory Description: Detailed description of the geographic or market territory assigned

2. Schedule 2 - Commission Rates: Detailed breakdown of commission structures and rates for different products/services

3. Schedule 3 - Product List: List of products/services the representative is authorized to sell

4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics

5. Schedule 5 - Reporting Templates: Standard forms and templates for sales reporting

6. Appendix A - Company Policies: Relevant company policies the representative must comply with

7. Appendix B - Marketing Guidelines: Guidelines for use of company branding and marketing materials

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Sales Contract

Sector

Cost

Free to use
Relevant legal definitions


























Clauses





































Relevant Industries

Manufacturing

Technology

Consumer Goods

Professional Services

Wholesale Distribution

Software and SaaS

Medical and Healthcare

Industrial Equipment

Construction Materials

Telecommunications

Financial Services

Real Estate

Relevant Teams

Sales

Legal

Business Development

Commercial

Operations

Finance

Compliance

Contract Administration

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Sales Operations Manager

Channel Manager

Legal Counsel

Contracts Manager

Chief Revenue Officer

VP of Sales

Regional Sales Manager

Independent Sales Representative

Sales Agent

Business Owner

Managing Director

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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