Salesperson Contract Template for Canada

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Key Requirements PROMPT example:

Salesperson Contract

"I need a Salesperson Contract for hiring a senior territory sales representative in Ontario who will handle our medical device product line, with a 70-30 commission-base salary split and exclusive rights to the Greater Toronto Area starting March 2025."

Document background
The Salesperson Contract serves as a crucial legal document establishing the employment relationship between a company and its sales professionals in Canada. This agreement is essential for organizations employing commission-based sales staff and needs to be utilized when hiring new sales employees or updating terms for existing sales staff. The contract addresses key aspects including commission structures, sales territories, performance metrics, and protection of company interests, while ensuring compliance with both federal and provincial employment standards. It is particularly important for businesses relying on direct sales forces and provides necessary protections for both employer and employee in the unique context of sales-based employment relationships. The document requires careful consideration of provincial variations in employment law and should be customized based on the specific province where the salesperson will be primarily working.
Suggested Sections

1. Parties: Identification of the employer and salesperson, including legal names and addresses

2. Background: Context of the agreement and brief description of the business and role

3. Definitions: Key terms used throughout the agreement including 'Territory', 'Products', 'Commission', 'Customers'

4. Appointment and Term: Confirmation of employment, role, and duration (fixed-term or indefinite)

5. Duties and Responsibilities: Detailed description of the salesperson's obligations and performance expectations

6. Compensation Structure: Base salary, commission rates, bonus structures, and payment terms

7. Working Hours and Reporting: Expected working hours, reporting requirements, and sales tracking procedures

8. Expenses and Reimbursement: Policy on business expenses, vehicle allowance, and reimbursement procedures

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

10. Intellectual Property: Ownership of work product and customer relationships

11. Non-Solicitation: Restrictions on soliciting customers or employees post-employment

12. Termination: Grounds for termination, notice periods, and post-termination obligations

13. General Provisions: Standard clauses including governing law, amendments, and entire agreement

Optional Sections

1. Territory Assignment: Used when the salesperson is assigned to a specific geographic territory or market segment

2. Product Line Restrictions: Include when salesperson is limited to specific product lines

3. Non-Competition: Add when reasonable non-compete restrictions are necessary and enforceable

4. Company Vehicle Policy: Include if company provides a vehicle or has specific vehicle requirements

5. Remote Work Provisions: Add for positions allowing work from home or remote sales activities

6. Team Leadership: Include if the salesperson has team leadership or management responsibilities

7. International Travel: Add for roles requiring cross-border travel or international sales

8. Stock Options/Equity: Include if offering equity compensation or stock options

Suggested Schedules

1. Schedule A - Compensation Plan: Detailed commission structures, bonus calculations, and payment schedules

2. Schedule B - Territory Map: Geographic boundaries or customer segment definitions for assigned territory

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

4. Schedule D - Expense Policy: Detailed policies regarding reimbursable expenses and procedures

5. Schedule E - Sales Targets: Specific performance metrics and quota requirements

6. Schedule F - Reporting Templates: Required sales report formats and submission schedules

7. Appendix 1 - Company Policies: Relevant company policies including code of conduct and sales practices

8. Appendix 2 - Benefits Summary: Overview of applicable benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Retail

Wholesale

Manufacturing

Technology

Pharmaceuticals

Real Estate

Financial Services

Telecommunications

Automotive

Industrial Equipment

Consumer Goods

Professional Services

Construction Materials

Medical Devices

Software and SaaS

Relevant Teams

Sales

Business Development

Account Management

Commercial

Revenue

Customer Success

Field Operations

Channel Partners

Enterprise Solutions

Regional Operations

Relevant Roles

Sales Representative

Account Executive

Business Development Manager

Territory Sales Manager

Regional Sales Director

Inside Sales Representative

Outside Sales Representative

Sales Consultant

Technical Sales Specialist

Key Account Manager

Senior Sales Executive

Sales Engineer

Channel Sales Manager

Direct Sales Representative

Enterprise Sales Executive

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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