What is a sales representative employment agreement?

On Behalf of | Jul 9, 2020 | Firm News |

As a sales representative in Michigan, you play a critical role for your company. Your talent as a sales agent is directly related to the company’s financial success. Upon hire, many companies will ask you to sign a sales representative employment agreement.

While companies design these contracts to ensure consistency among the agents that sell their service or product, you want to make sure that the agreement protects your rights as an employee.

The purpose of an employment agreement

The purpose of an employment agreement is to clearly state the rights and responsibilities of both the company and the employee. The contract may include the following:

  • What product and/or service you are selling
  • Where you are able to sell the product and/or service
  • How you are to sell the product and/or service
  • Who you are able to sell the product to
  • What percent of commission you are entitled to
  • How you are to receive the commission

The contract may also include what type of information is considered confidential and should not be disclosed to other entities. Furthermore, the contract should be valid for a certain time period. After that date expires, the terms of the agreement can be revisited and revised if needed.

Upholding your rights

If your company presents you with an employment agreement, they should allow ample time for you to review the terms of the arrangement before you choose to sign. During that time, you may want to ensure the terms of the contract are legally valid. Be sure to read over the representative agreement extremely carefully. Furthermore, make sure that you understand the terms before signing the final contract.