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Salesperson Contract Template for South Africa

A comprehensive employment agreement governed by South African law, specifically designed for sales professionals. This contract establishes the terms and conditions of employment, including base salary, commission structures, sales targets, and performance metrics. It incorporates key provisions required by South African labor legislation, including the Basic Conditions of Employment Act and Labour Relations Act, while addressing specific sales-related aspects such as territory allocation, client relationships, and commission calculations. The agreement also covers confidentiality obligations, restraint of trade provisions, and detailed commission structures through accompanying schedules.

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What is a Salesperson Contract?

This Salesperson Contract template is designed for use in South Africa when engaging sales professionals in various industries. The document complies with South African employment law, including the Basic Conditions of Employment Act, Labour Relations Act, and relevant sales-related regulations. It should be used when hiring new sales staff or updating existing sales employment agreements to ensure proper documentation of commission structures, sales territories, and performance expectations. The contract includes essential provisions for protecting company interests while ensuring fair treatment of sales employees, covering aspects such as client relationships, confidential information, and post-employment restrictions. This template is particularly valuable for businesses operating in South Africa that employ commission-based sales staff and need to clearly document the terms of employment, compensation structure, and performance expectations.

What sections should be included in a Salesperson Contract?

1. Parties: Identification of the employer company 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 'Commission', 'Sales Territory', 'Products', 'Targets'

4. Appointment and Duration: Terms of employment, including start date and whether fixed-term or permanent

5. Duties and Responsibilities: Detailed description of the salesperson's role, reporting lines, and key performance areas

6. Remuneration Structure: Base salary, commission calculations, payment terms, and any additional benefits

7. Working Hours and Location: Standard working hours, flexibility requirements, and designated sales territory

8. Targets and Performance Metrics: Sales targets, KPIs, and performance evaluation criteria

9. Confidentiality: Protection of company information, trade secrets, and customer data

10. Restraint of Trade: Non-compete and non-solicitation provisions

11. Company Property: Provisions regarding company vehicles, devices, and materials

12. Leave Entitlements: Annual, sick, and other leave provisions as per BCEA

13. Termination: Notice periods and grounds for termination

14. General Provisions: Standard legal clauses including governing law, dispute resolution, and entire agreement

What sections are optional to include in a Salesperson Contract?

1. Vehicle Allowance: Include when the salesperson uses their personal vehicle for work purposes

2. International Travel: Include for roles requiring cross-border travel

3. Team Leadership: Include for senior salespeople with team management responsibilities

4. Product Training: Include when specific product training requirements exist

5. Work From Home: Include policies for remote working arrangements

6. Special Incentives: Include when offering additional performance-based incentives beyond standard commission

7. Digital Tools and Systems: Include when specific software or digital platforms are required for the role

What schedules should be included in a Salesperson Contract?

1. Schedule A - Commission Structure: Detailed breakdown of commission percentages, tiers, and calculation methods

2. Schedule B - Sales Territory: Detailed description and/or maps of assigned sales territory

3. Schedule C - Product List: List of products/services the salesperson is authorized to sell

4. Schedule D - Targets and Quotas: Specific sales targets and quotas for performance evaluation

5. Schedule E - Expense Policy: Guidelines for claiming work-related expenses

6. Schedule F - Company Vehicle Policy: Terms of use for company vehicle if provided

7. Appendix 1 - Code of Conduct: Company's code of conduct and sales ethics policy

8. Appendix 2 - Benefits Summary: Summary of all benefits and perks provided

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

South Africa

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use

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