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Sales Employment Contract Template for Saudi Arabia

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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."

What is a Sales Employment Contract?

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.

What sections should be included in a Sales Employment Contract?

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

What sections are optional to include in a Sales Employment Contract?

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

What schedules should be included in a Sales Employment Contract?

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

Alex Denne

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

Relevant legal definitions








































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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

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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