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Employment Agreement - Sales Manager


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Introduction
Description
Use
Table of Contents

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Introduction

Employing a sales manager is essential to ensure the profitability, growth and survival of a business. The sales manager plans, organizes, directs and controls all activities related to the promotion and sale of the business’ products and services. This position in found in all sectors of industry and in all types of business.

Given its importance within a company, the best management practice requires the establishment of a solid framework for such position. The following document, in its annotated version, explains the most important legal, administrative and financial components related to this position within the business.

Description

The Employment Agreement for the Sales Manager is the legal instrument by which a CORPORATION / COMPANY, hires a person called the Sales Manager, in order to entrust to the latter the management of the sales service of the COMPANY / CORPORATION. This instrument is used to establish the respective obligations of the parties, so as to govern their relationship.

Use

In Canada, there are no legal provisions requiring an employer and an employee to sign a formal contract of employment. A simple verbal agreement is sufficient to establish the contractual relationship of employment, which will be subject to the applicable law. But the latter does not provide an adequate, custom-made legal framework to meet the specific needs of the parties.

To illustrate this statement, we refer to the issue of delegation of authority to the managers of a company. Under the applicable law of Quebec and Canada, the absence of a written contract setting out limits of such delegation may be problematic for a company whose leaders have too much freedom in the exercise of their executive powers.

Two types of instruments can be used to evidence an employment relationship. They are the employment letter and the employment agreement. The employment letter is limited to stating the general conditions of employment without giving details. The employment agreement, on the other hand, is intended to govern, precisely and in details, the relationship between employer and employee. Given the important role that the Sales Manager is expected to play in the COMPANY / CORPORATION, it is important not to leave anything to chance in the construction of the contractual relationship. Although contractors may use our sophisticated template of employment letter (document C03.555 of the Business Precedents), we prefer, without a doubt, to use the employment agreement since it allows much more detail in the establishment of such legal relationship.

However, if the Sales Manager has an immediate supervisor, for instance the Chief Marketing Officer, it may be desirable to base the employment agreement of the Sales Manager on the employment agreement of his immediate supervisor. It is also possible that the presence of a Chief Marketing Officer as supervisor reduces the importance of the Sales Manager position, in which case the employment letter (document C03.555 of the Business Precedents) may be a better choice.

Furthermore, it should be kept in mind that the contract is primarily a negotiating tool. Also, its contents can vary depending on what is agreed with the person concerned. However, the contract presented below shows the most fundamental aspects of this type of relationship. It can therefore serve both as a negotiating framework and to help with drafting the employment agreement of the Sales Manager.

It should be noted that the legal content of this instrument has been designed according to the laws of the province of Quebec, Canada. Any proposed use of this document for a court other than the province of Quebec requires validation of its content by an attorney practicing in such jurisdiction.

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Admissible Expenses
0.01.03 Agreement
0.01.04 Best Effort
0.01.05 Board of Directors
0.01.06 Budget
0.01.07 Change in Control
0.01.08 Client
0.01.09 Code of Conduct
0.01.10 Confidential Information
0.01.11 Entire Term
0.01.12 Fiscal Year
0.01.13 Force Majeure
0.01.14 Intellectual Property
0.01.15 Law
0.01.16 Legal Representatives
0.01.17 PARTY
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Related Person
0.01.21 Suppliers
0.01.22 Territories
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 References within Agreement
0.04.03 Gender and Number
0.04.04 Headings
0.04.05 Presumptions
0.04.06 Knowledge
0.04.07 Approval
0.04.08 GAAP
1.00 PURPOSE
1.01 Employment
1.02 Responsibilities
1.03 Delegation of Authority
1.03.01 General Powers
1.03.02 Accountability
1.04 Workplace
2.00 COMPENSATION AND BENEFITS
2.01 Signing Bonus
2.02 Base Salary
2.02.01 Initial
2.02.02 Adjustment
2.03 Performance Bonus
2.04 Option
2.04.01 Grant
2.04.02 Duration
2.04.03 Exercise
2.05 Vacation
2.06 Insurance
2.06.01 Disability
2.06.02 Liability
2.06.03 Collective or Group
2.07 Pension Plan
2.08 Acknowledgement
3.00 TERMS OF PAYMENT
3.01 Signing Bonus
3.02 Base Salary
3.03 Performance Bonus
3.04 Interest
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
6.00 REPRESENTATIONS AND WARRANTIES OF EMPLOYER
6.01 Status
6.02 Authority
6.03 Binding Agreement
7.00 REPRESENTATIONS AND WARRANTIES OF SALES MANAGER
7.01 Canadian Resident
7.02 Information
7.03 Health
8.00 MUTUAL DUTIES AND OBLIGATIONS
9.00 DUTIES AND OBLIGATIONS OF EMPLOYER
9.01 Resources
9.02 Equipment
9.02.01 Laptop Computer
9.02.02 Mobile Communication Device
9.03 Expenses
9.04 Indemnification
9.05 Training
9.06 Relocation
9.07 Personal Information and Privacy
9.08 Termination of Employment
9.08.01 Balance
9.08.02 Career Transition Assistance
10.00 DUTIES AND OBLIGATIONS OF SALES MANAGER
10.01 Availability/Exclusivity
10.02 Collaboration
10.03 Relationship with Management
10.04 Distribution Network
10.05 Support
10.06 Database
10.07 Conduct
10.08 Confidential Information
10.08.01 Acknowledgement
10.08.02 Return of Documentation
10.09 Non-competition
10.09.01 Scope
10.09.02 Adjustments
10.09.03 Penalty
10.10 Non-solicitation of Clients
10.10.01 Scope
10.10.02 Penalty
10.11 Non-solicitation of Staff
10.11.01 Scope
10.11.02 Penalty
10.12 Business Opportunities
10.13 Conflict of Interest
10.14 Intellectual Property
10.14.01 Disclosure
10.14.02 Assignment
10.14.03 Waiver
10.14.04 Cooperation
10.14.05 Execution
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.02 Other Remedies
11.02.01 Choices
11.02.02 No Limitations
11.03 Prescription
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 By EMPLOYER
13.03 By SALES MANAGER
13.04 Termination of Employment
13.04.01 Departure
13.04.02 Reimbursement of Advances
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.04 Indeterminate
15.05 Survival
15.06 Non Renewal
16.00 SCOPE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF EMPLOYER
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