The Sales Employment Contract is essential for companies operating in Saudi Arabia that employ sales professionals. This document serves as a legally binding agreement between the employer and sales employee, structured to comply with Saudi Labor Law (Royal Decree No. M/51) and relevant Ministry of Human Resources and Social Development regulations. It is particularly important for organizations with commission-based compensation structures and defined sales territories. The contract includes crucial elements such as base compensation, commission calculations, performance metrics, and territory definitions, while ensuring compliance with mandatory employment provisions under Saudi law. This document is typically used when hiring new sales staff or updating existing employment terms to reflect changes in sales roles or regulatory requirements. The contract addresses both the employer's need for sales performance management and the employee's rights under Saudi labor regulations.
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Key Requirements PROMPT example:
Sales Employment Contract
"I need a Sales Employment Contract for a Saudi Arabia-based regional sales manager who will cover the Eastern Province, with a 70/30 base-to-commission split and team management responsibilities, starting March 1, 2025."
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract, including sales-specific terminology
4. Appointment and Term: Details of the position, employment status, and duration (fixed-term or unlimited)
5. Duties and Responsibilities: Detailed description of the sales role, targets, and reporting requirements
6. Working Hours and Location: Specified working hours, territory coverage, and base location requirements
7. Compensation and Benefits: Base salary, commission structure, and other benefits as per Saudi Labor Law
8. Leave Entitlements: Annual leave, sick leave, and other leave types as per Saudi Labor Law
9. Confidentiality: Protection of company information, customer data, and trade secrets
10. Non-Competition: Restrictions on working with competitors during and after employment
11. Performance Evaluation: Sales targets, KPIs, and evaluation criteria
12. Termination: Grounds and procedures for contract termination as per Saudi Labor Law
13. Governing Law: Reference to Saudi Labor Law and Islamic Shariah principles
14. Signatures: Execution clause and signature blocks for both parties
1. Probationary Period: Used when the employer wants to implement a probationary period of up to 90 days
2. International Travel: Include when the role requires travel outside Saudi Arabia
3. Product Training: Include when specific product training requirements exist
4. Vehicle Allowance: Include when providing company vehicle or transport allowance
5. Team Management: Include when the role involves managing other sales staff
6. Expense Policy: Include when role involves regular business expense claims
7. Remote Work: Include when allowing work from home or remote locations
8. Social Media Policy: Include when employee will represent company on social media
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
2. Schedule 2 - Sales Targets: Specific sales targets, quotas, and measurement periods
3. Schedule 3 - Territory Assignment: Defined sales territory and any exclusive rights
4. Schedule 4 - Benefits Package: Detailed description of additional benefits, allowances, and insurance coverage
5. Schedule 5 - Product Portfolio: List of products/services the employee is authorized to sell
6. Appendix A - Code of Conduct: Company's code of conduct and ethical sales practices
7. Appendix B - Expense Policy: Detailed policies regarding business expense claims and reimbursement
8. Appendix C - Customer Management Protocols: Procedures for customer relationship management and reporting
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Technology
Manufacturing
Financial Services
Telecommunications
Pharmaceutical
Real Estate
Automotive
Consumer Goods
Industrial Equipment
Professional Services
Healthcare
Relevant Teams
Sales
Business Development
Account Management
Human Resources
Legal
Finance
Operations
Commercial
Relevant Roles
Sales Representative
Sales Manager
Account Executive
Business Development Manager
Regional Sales Director
Sales Coordinator
Territory Manager
Key Account Manager
Inside Sales Representative
Outside Sales Representative
Sales Consultant
Senior Sales Executive
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