Contractual Employment for DirectorsĪ director’s service contract will usually address the principal terms of the director’s employment – including job title, salary, hours, benefits etc – but will often need to be read in conjunction with the company’s employee handbook (which will contain company policies among other things) and any pension plan or other documentation generally applicable to the company’s employees.Īdditionally a director will have actual and ostensible authority to bind the Company to contractual arrangements and obligations and to incur liabilities on its behalf provided that the director complies with his director’s duties under the Companies Act 2006 in making such decision so that he can demonstrate that he thought it would be in the best interests of the Company to proceed. Whether you are a company looking for a new form of agreement or a director being asked to sign one, our experienced solicitors will be able to provide you with clear, straightforward advice on your requirements and, where required, we can help negotiate the terms of the service contract with the other party. Employment contracts for directors are usually known as service contracts.Īt Farleys, our team of experienced Company and Employment Law solicitors will work together to ensure that your director’s service agreement is comprehensive and covers as many of the potential pitfalls as possible. However, a director will often have greater power and responsibility than other employees and so it is even more important that their rights and duties are properly documented.
Directors can also be employees (known as executive directors) and therefore must also have written terms of employment. It is a legal requirement that all employees must have at least basic written terms of employment.
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