The Sales Subcontractor Agreement is essential for businesses operating in Australia that wish to expand their sales capacity through independent contractors rather than employees. This document is particularly valuable when companies need flexible sales resources, territory-specific coverage, or specialized product expertise without the obligations of direct employment. The agreement comprehensively addresses key aspects such as commission structures, performance metrics, territory definitions, and compliance with Australian legislation including the Independent Contractors Act 2006 and Competition and Consumer Act 2010. It's designed to protect both parties' interests while maintaining clear boundaries between independent contractor and employment relationships, making it suitable for businesses of various sizes and industries that utilize external sales channels.
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1. Parties: Identification of the principal company and the subcontractor, including ABN/ACN
2. Background: Context of the agreement, nature of the principal's business, and purpose of engaging the subcontractor
3. Definitions: Key terms used throughout the agreement including Territory, Products, Services, Intellectual Property, etc.
4. Appointment and Scope: Terms of appointment, territory allocation, and scope of authorized sales activities
5. Term and Termination: Duration of the agreement, renewal provisions, and termination rights
6. Subcontractor Obligations: Core responsibilities, sales targets, reporting requirements, and conduct standards
7. Principal's Obligations: Support, training, and resources to be provided by the principal
8. Compensation: Commission structure, payment terms, and expense policies
9. Independent Contractor Relationship: Clear establishment of independent contractor status and associated obligations
10. Compliance: Regulatory compliance requirements, including consumer law and privacy obligations
11. Confidentiality: Protection of confidential information and trade secrets
12. Intellectual Property: Ownership and usage rights of IP, including marketing materials
13. Insurance and Liability: Required insurance coverage and limitation of liability provisions
14. Dispute Resolution: Process for handling disputes and applicable jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, amendment process, and governing law
1. Non-Compete: Restrictions on competing activities during and after the agreement term - include when protecting market position is crucial
2. Marketing and Branding: Specific requirements for brand representation and marketing standards - include when brand consistency is vital
3. Training Requirements: Mandatory training programs and certifications - include when products/services require specific expertise
4. Performance Reviews: Formal evaluation process and consequences - include when performance management is critical
5. Customer Data Management: Specific provisions for handling customer information - include when significant customer data is involved
6. Equipment and Resources: Provisions regarding company-provided tools or resources - include when specific equipment is provided
7. Multiple Territory Management: Rules for managing multiple territories - include when subcontractor may operate in various regions
1. Schedule 1 - Territory Definition: Detailed description of assigned sales territory including maps or boundaries
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, bonus structures, and calculation methods
3. Schedule 3 - Product List: Comprehensive list of products/services the subcontractor is authorized to sell
4. Schedule 4 - Performance Metrics: Specific KPIs, sales targets, and measurement criteria
5. Schedule 5 - Reporting Templates: Standard forms and templates for required sales reports
6. Schedule 6 - Operating Procedures: Detailed sales processes, customer handling procedures, and compliance requirements
7. Appendix A - Insurance Requirements: Specific insurance types and coverage levels required
8. Appendix B - Approved Marketing Materials: Templates and guidelines for marketing and sales materials
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Professional Services
Pharmaceuticals
Construction
Consumer Goods
Financial Services
Telecommunications
Industrial Equipment
Software and SaaS
Medical Devices
Real Estate
Relevant Teams
Sales
Legal
Compliance
Human Resources
Commercial Operations
Business Development
Contract Administration
Risk Management
Finance
Relevant Roles
Sales Director
Business Development Manager
Channel Manager
Sales Operations Manager
Legal Counsel
Compliance Officer
Contract Manager
Commercial Manager
Territory Manager
Chief Revenue Officer
Sales Administrator
HR Director
Chief Commercial Officer
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