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Doc Ref. SC-CPdr06

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Non-exec director service contract: director an employee

Suitable for semi-retired employee or non-exec paid in partby
commission or “earnings

About this document

This document is suitable for use by the board or governing body of a company agreeing terms with a new director or changed terms with an existing office holder or an individual director wishing to write his own contract in terms which specifically suit him. It has been drafted for a non-executive director is a member of the board of directors of a company who does not form part of the executive management team. He or she is an employee of the company for all legal purposes.

This document provides a balance between protection for the director and for the company. If there is a difference in interests, we have favoured the company. Some of these provisions are required to comply with the law. The explanatory notes, which come with these documents, will guide you as to the importance of specific issues.

Application and features

Protects the board from criticism

Protects the company from claims both before an Industrial Tribunal and in court

Protects the director from unreasonable demands

Up to date with the latest changes in company law

Provides a "shopping list" of possible director perquisites

Helps the company to comply with employment regulations

Includes principal provisions of the Employment Act 2002, effective April 2003

Provides a complete framework and other legal safeguards

Written in plain English

Contents

Compliance with Working Time Regulations 1998

Alternative holiday arrangements

Alternative pension provision

All usual perquisites

Retirement

Sickness, certification, sick pay

Arrangements during notice period

Director's compliance with all stock exchange and similar regulations

Extensive protection of new intellectual property

Summary termination and matters after termination

Confidentiality and data protection

Clear and comprehensive grievance and disciplinary procedures

Contracting out of entitlement to redundancy payment and certain other rights on expiry of the fixed term

Word Count (approximate):

Document: 5500 words

Explanatory notes: 1200 words

Draftsman

This document is drawn and maintained by Net Lawman. It is real law in plain English.

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