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Sales Manager Contract for Hong Kong

Sales Manager Contract Template for Hong Kong

This document is a comprehensive employment contract specifically designed for sales managers in Hong Kong, incorporating all necessary elements required under Hong Kong employment law, including the Employment Ordinance (Cap. 57). It details the terms and conditions of employment, including base compensation, commission structures, sales targets, territory assignments, team management responsibilities, and performance expectations. The contract also addresses crucial aspects such as confidentiality, non-competition, and intellectual property rights while ensuring compliance with local regulatory requirements including MPF contributions and data privacy laws.

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What is a Sales Manager Contract?

The Sales Manager Contract is a specialized employment agreement designed for use in Hong Kong's business environment, essential for companies hiring or promoting individuals into sales management positions. This contract type is particularly important as it combines standard employment terms required under Hong Kong law with specific provisions for sales-based roles, including commission structures, territory management, and team leadership responsibilities. It addresses unique aspects of sales management positions such as target-based performance metrics, client relationship management, and specialized confidentiality requirements. The document ensures compliance with Hong Kong's Employment Ordinance while protecting both employer and employee interests in areas such as intellectual property, customer relationships, and post-employment obligations.

What sections should be included in a Sales Manager Contract?

1. Parties: Identification of the employer company and the sales manager

2. Background: Brief context of the employment relationship and the role

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

4. Appointment and Term: Position title, employment term (fixed/indefinite), and probation period

5. Duties and Responsibilities: Core responsibilities, reporting structure, and performance expectations

6. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location

7. Remuneration and Benefits: Base salary, commission structure, bonus schemes, and standard benefits

8. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Hong Kong law

9. Confidentiality: Protection of company's confidential information and trade secrets

10. Intellectual Property: Ownership of work created during employment and client relationships

11. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities and client/employee solicitation

12. Termination: Notice periods, grounds for termination, and payment in lieu of notice

13. Post-Termination Obligations: Return of company property, handover requirements, and ongoing obligations

14. Governing Law: Specification of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Sales Manager Contract?

1. Performance Targets: Detailed performance expectations and review processes - include when specific sales targets are crucial to the role

2. Travel Requirements: Travel obligations and related compensation - include for roles requiring significant travel

3. Team Management: Management responsibilities and team structure - include for senior sales manager positions

4. Product Training: Required training programs and certifications - include when specific product knowledge is crucial

5. Client Relationship Management: Specific obligations regarding client relationships - include for key account managers

6. Expense Policy: Rules for business expense claims - include when role involves significant expenses

7. Remote Working: Terms for remote work arrangements - include if flexible working is offered

8. Data Protection: Specific data handling requirements - include when dealing with sensitive customer data

9. Change of Control: Provisions for company ownership changes - include for senior positions

What schedules should be included in a Sales Manager Contract?

1. Schedule 1 - Commission Structure: Detailed commission rates, calculation methods, and payment terms

2. Schedule 2 - Sales Territory: Defined geographical or client territory boundaries

3. Schedule 3 - Performance Metrics: Specific KPIs and measurement criteria

4. Schedule 4 - Benefits Package: Detailed description of all benefits and eligibility criteria

5. Schedule 5 - Company Policies: Reference to applicable company policies and procedures

6. Appendix A - Approved Expense Guidelines: Detailed guidelines for business expense claims

7. Appendix B - Product Portfolio: List of products/services the manager is responsible for

8. Appendix C - Reporting Templates: Standard forms for sales reporting and tracking

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use

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