The Sales Manager Contract is essential for companies operating in Germany who wish to employ sales management professionals in a legally compliant manner. This document serves as a comprehensive employment agreement that combines standard German employment terms with specific provisions for sales management roles. It should be used when hiring new sales managers or promoting existing employees to sales management positions. The contract includes mandatory written terms required by German law, detailed commission structures, performance metrics, and management responsibilities. It ensures compliance with various German regulations including the Civil Code (BGB), Commercial Code (HGB), and data protection laws, while protecting both employer and employee interests in the sales context. The document is particularly important as it addresses unique aspects of sales management such as territory rights, customer relationships, and commission-based compensation within the framework of German employment law.
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1. Parties: Identification of the employer company and the sales manager employee
2. Background: Brief context of the appointment and employment relationship
3. Definitions: Key terms used throughout the contract, including sales-related terminology
4. Appointment and Duration: Position title, start date, and term of employment (fixed-term or permanent)
5. Duties and Responsibilities: Core sales management responsibilities, reporting lines, and management obligations
6. Working Hours and Place of Work: Standard working hours, flexibility requirements, and primary work location
7. Remuneration: Base salary, commission structure, and other financial benefits
8. Sales Targets and Performance Metrics: Definition of sales targets, KPIs, and performance evaluation criteria
9. Benefits and Insurance: Health insurance, pension contributions, and other standard benefits
10. Vacation and Leave: Annual leave entitlement and other leave provisions
11. Confidentiality: Protection of company and customer information
12. Data Protection: GDPR compliance and handling of personal/customer data
13. Non-Competition: Post-employment competition restrictions
14. Termination: Notice periods and termination provisions
15. Governing Law: Confirmation of German law application and jurisdiction
1. International Travel: Include when role requires regular international travel
2. Company Car: Include when a company car is provided
3. Stock Options/Share Schemes: Include for companies offering equity participation
4. Remote Work Provisions: Include when hybrid or remote work is permitted
5. Language Requirements: Include when specific language skills are required
6. Inventions and IP: Include when role involves product development or innovation
7. Training and Development: Include when specific training programs or certifications are required
8. Compliance with Industry Regulations: Include for regulated industries (e.g., financial services)
1. Schedule 1: Commission Structure: Detailed breakdown of commission calculations, thresholds, and payment terms
2. Schedule 2: Sales Territories: Definition of assigned sales territories and customer segments
3. Schedule 3: Performance Bonus Scheme: Detailed criteria and calculations for performance-based bonuses
4. Schedule 4: Benefits Package: Detailed description of all benefits and eligibility criteria
5. Schedule 5: Company Policies: Key company policies applicable to the role
6. Appendix A: Job Description: Detailed description of roles, responsibilities, and expectations
7. Appendix B: Sales Reporting Templates: Standard formats for sales reporting and documentation
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