The Employment Contract For Sales Representative is a crucial document used when hiring sales personnel in Indonesia, designed to establish clear terms of employment while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations. This contract type is specifically tailored for sales roles, incorporating essential elements such as base salary, commission structures, sales territories, and performance metrics, while also addressing mandatory requirements under Indonesian law including social security contributions, statutory leave entitlements, and worker protections. It's particularly important for businesses establishing or expanding their sales force in Indonesia, as it provides legal protection for both employer and employee while clearly defining expectations, responsibilities, and compensation structures specific to sales roles.
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1. Parties: Identification of the employer company and the sales representative, including complete legal names and addresses
2. Background: Brief context of the employment relationship and the sales representative position
3. Definitions: Key terms used throughout the agreement, including specific sales-related terminology
4. Appointment and Duration: Terms of employment, position title, and contract duration (fixed-term or permanent)
5. Duties and Responsibilities: Detailed description of the sales representative's role, territories, and performance expectations
6. Working Hours and Location: Standard working hours, flexibility provisions, and primary work location
7. Compensation and Benefits: Base salary, commission structure, benefits package, and payment terms
8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage
10. Confidentiality: Protection of company information, client data, and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
12. Performance Evaluation: Assessment criteria, review periods, and consequences of performance outcomes
13. Termination: Grounds for termination, notice periods, and severance provisions
14. Governing Law: Confirmation of Indonesian law application and jurisdiction
15. Dispute Resolution: Process for resolving employment-related disputes
1. Probationary Period: Terms of initial probation period - used for permanent employment contracts only
2. International Travel: Include when role requires travel outside Indonesia
3. Vehicle Allowance: Include when company provides or compensates for vehicle use
4. Product Training: Include when specific product training requirements exist
5. Inventory Management: Include when sales representative handles physical product inventory
6. Remote Work Provisions: Include when role allows for remote working arrangements
7. Team Leadership: Include when position involves supervising junior sales staff
8. Digital Tools and Equipment: Include when company provides specific sales or tracking software/equipment
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, calculations, and payment terms
2. Schedule 2 - Sales Targets: Specific sales targets and KPIs for performance measurement
3. Schedule 3 - Territory Assignment: Defined sales territory and any exclusive rights
4. Schedule 4 - Benefits Package: Detailed description of all benefits, allowances, and reimbursement policies
5. Schedule 5 - Product List: List of products/services the representative is authorized to sell
6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - Expense Policy: Guidelines for business expense claims and reimbursement procedures
8. Appendix C - Reporting Templates: Standard forms for sales reporting and documentation
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