This Salesperson Contract is designed for use when engaging sales professionals in Hong Kong, whether for new hires or updating existing employment terms. The document complies with Hong Kong employment legislation while providing a comprehensive framework for the sales employment relationship. It includes essential provisions for base compensation, commission structures, sales territories, performance metrics, and protective covenants for the employer. The contract is particularly important for organizations with commission-based sales roles and those requiring specific territory or customer segment assignments. A well-structured Salesperson Contract helps prevent future disputes by clearly defining expectations, compensation mechanisms, and performance criteria while ensuring compliance with local employment regulations.
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1. Parties: Identification of the employer and the salesperson, including full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including definition of territory, products, customers, and commission-related terms
4. Appointment and Term: Terms of employment, position title, and duration (fixed-term or continuous)
5. Duties and Responsibilities: Detailed description of the salesperson's role, targets, and reporting requirements
6. Compensation Structure: Base salary, commission calculations, bonus structures, and payment terms
7. Working Hours and Location: Standard working hours, flexibility requirements, and primary work location
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 products and customer relationships
11. Post-termination Restrictions: Non-compete and non-solicitation clauses
12. Termination: Notice periods and grounds for termination
13. Governing Law: Specification of Hong Kong law as governing law and jurisdiction
1. Probationary Period: Details of initial probation period, if applicable
2. Company Car Provision: Terms for providing and using a company vehicle, if offered
3. Expense Policy: Rules for claiming business expenses and reimbursement procedures
4. Overseas Travel: Terms relating to international business travel requirements
5. Team Management: Additional responsibilities if the salesperson will manage other team members
6. Stock Options: Details of any share option or equity participation schemes
7. Digital Tools and Equipment: Provisions regarding company-provided devices and software
8. Work from Home: Policies regarding remote working arrangements
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule 2 - Sales Targets: Specific sales targets and KPIs for performance evaluation
3. Schedule 3 - Territory Definition: Detailed description of assigned sales territory or customer segments
4. Schedule 4 - Product List: List of products/services the salesperson is authorized to sell
5. Schedule 5 - Benefits Package: Details of additional benefits, insurance coverage, and MPF arrangements
6. Appendix A - Expense Policy: Detailed policies and procedures for business expense claims
7. Appendix B - Company Policies: Relevant company policies including code of conduct and sales practices
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