The Sales Representative Agreement is essential for businesses operating in Australia that engage independent sales representatives to promote and sell their products or services. This document is crucial for establishing clear boundaries between independent contractor and employment relationships, ensuring compliance with Australian legislation including the Independent Contractors Act 2006 and Fair Work Act 2009. The agreement typically covers key aspects such as territory definitions, commission structures, performance expectations, and termination conditions. It's particularly important for businesses expanding their sales force without creating direct employment relationships, and helps protect intellectual property, maintain confidentiality, and set clear expectations for both parties. The document should be customized based on the specific industry, territory, and commercial arrangements while ensuring compliance with relevant Australian federal and state laws.
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1. Parties: Identification of the principal company and the sales representative, including full legal names and addresses
2. Background: Context of the agreement, nature of the principal's business, and purpose of engaging the sales representative
3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Products', 'Commission', 'Customers'
4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and the scope of the representative's authority
5. Territory and Products: Definition of the geographic area and specific products/services the representative is authorized to sell
6. Duties and Obligations: Detailed responsibilities of the sales representative, including sales targets, reporting requirements, and professional conduct
7. Independent Contractor Status: Clear statement of independent contractor relationship and associated terms
8. Commission Structure: Detailed explanation of commission calculations, payment terms, and conditions for earning commission
9. Term and Termination: Duration of the agreement and circumstances under which either party may terminate
10. Confidentiality: Protection of confidential information and trade secrets
11. Intellectual Property: Ownership and usage rights of trademarks, logos, and marketing materials
12. Non-Compete and Non-Solicitation: Restrictions on competitive activities during and after the agreement
13. General Provisions: Standard legal clauses including governing law, dispute resolution, and entire agreement
1. Training and Support: Include when the principal provides specific training or support services
2. Marketing and Advertising: Include when the representative has specific marketing responsibilities or restrictions
3. Insurance Requirements: Include when specific insurance coverage is required from the representative
4. Performance Reviews: Include when formal review processes are part of the relationship
5. Expense Reimbursement: Include when certain expenses will be reimbursed by the principal
6. Sub-agents: Include when the representative is permitted to appoint sub-agents
7. Data Protection: Include when the role involves significant handling of customer data
8. International Sales: Include when the territory includes international markets
1. Schedule 1 - Territory Description: Detailed description of the geographic territory, including maps if applicable
2. Schedule 2 - Product List: Comprehensive list of products/services the representative is authorized to sell
3. Schedule 3 - Commission Rates: Detailed commission structures, including any variations by product or customer type
4. Schedule 4 - Sales Targets: Specific sales targets and any associated bonus structures
5. Schedule 5 - Reporting Templates: Standard forms and templates for required reports
6. Schedule 6 - Approved Marketing Materials: List of approved marketing materials and usage guidelines
7. Appendix A - Code of Conduct: Specific behavioral and ethical requirements for the representative
8. Appendix B - Operating Procedures: Detailed procedures for order processing, customer service, and other operational matters
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