Sales Employee Contract Template for South Africa

This Sales Employee Contract is designed for use when hiring sales professionals in South Africa, ensuring compliance with local employment legislation while addressing the unique aspects of sales-based employment relationships. The contract serves as a comprehensive employment agreement that establishes clear terms regarding basic employment conditions, commission structures, sales territories, and performance expectations. It includes provisions required by South African labor law, including those outlined in the Basic Conditions of Employment Act and Labour Relations Act, while also incorporating sales-specific elements such as target-based incentives and client relationship management responsibilities. This document is particularly crucial for businesses employing sales staff as it provides clarity on commission calculations, performance metrics, and territory assignments while protecting the company's interests through appropriate confidentiality and restraint of trade provisions.

1. Parties: Identification of the employer and employee with full legal names and details

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the contract

4. Position and Duties: Detailed description of the sales role, responsibilities, and reporting structure

5. Commencement and Duration: Start date and nature of employment (permanent/fixed-term)

6. Probation Period: Terms and duration of the probationary period

7. Remuneration Structure: Base salary, commission structure, and payment terms

8. Working Hours: Standard working hours, flexibility requirements, and overtime provisions

9. Leave Entitlements: Annual, sick, family responsibility, and other statutory leave

10. Sales Targets and Performance Metrics: Definition of sales targets, KPIs, and performance evaluation criteria

11. Confidentiality: Protection of company information and trade secrets

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

13. Company Property: Provisions regarding company assets, equipment, and their usage

14. Termination: Conditions and procedures for contract termination

15. Dispute Resolution: Process for handling employment-related disputes

16. General Provisions: Standard legal clauses including governing law and entire agreement