Directors service agreement (employment contract)

13 Reviews
Select support levelCompare
Recommended

Document overview

This directors service agreement is a complete legal and practical framework for the employment of any executive director, whether on a running contract or on a fixed term. It is an employment contract for senior level staff that also defines the relationship between the director and the organisation. Provision for remuneration and common benefits is included, as is strong protection of company information.
Compliant
Compliant with the latest law
Document propertied
Document properties
  • Length:19 pages (5200 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
watertight guarantee
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

writing in plain english
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Notes
Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

email
Support from our legal team

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Update
Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this directors service agreement

Today a company is under a statutory obligation to provide written terms of employment to a director, as to any other employee. It is advantageous to both sides to set down the package in an employment contract (for directors, also known as a directors service agreement), rather than in just a few words from the company.

This directors service agreement provides a complete legal and practical framework for any executive director. It covers all the requirements for an employment contract of a board member as well as clarifying the relationship between the company and the director so as to prevent conflicts of interest. The service contract is particularly strong on the protection of confidentiality and company secrets.

The service agreement is flexible and can be used whether:

  • the term of employment is fixed or running;
  • the organisation is a company, charity or NGO (in the case of the latter two, the employee will be director level equivalent).

All common perquisites such as salary and benefits are also covered. Use of plain English makes editing easy and allows it to be understood by all parties.

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.

Account has been taken in this contract of:

  • the employment rights of executive directors are the same as other employees, but there is an additional need to regulate the relationship between the director and the organisation;
  • The Basic Conditions of Employment Act

When to use this directors service agreement

  • Appropriate for any director (including a Managing Director, CEO or Chairman) of any company;
  • Can also be used for charities and NGOs where the level of senior management is equivalent to the directors of a company;
  • Can be used for an employed part-time director.

Employment contract features and contents

  • 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;
  • Inculdes the Basic Conditions of Emplyment Act;
  • Follows current best practice recommendations by Department of Labour;
  • Strong on protection of employer's confidential information;
  • Structured so as to minimise the administrative burden of legal compliance.

The directors service agreement comprises 30 paragraphs and a schedule:

  • Start and continuity;
  • Job title and description;
  • Place and hours of work;
  • Salary;
  • Expenses;
  • Leave for holidays and other reasons;
  • Sickness or other absence;
  • Pension;
  • Health insurance;
  • Liability insurance;
  • Company car;
  • Director's responsibilities;
  • Other business and employment;
  • No competition;
  • Confidentiality;
  • Intellectual property;
  • Staff handbook and company policies;
  • Disciplinary and grievance procedures;
  • Termination (of employment or fixed term);
  • Arrangements during notice period;
  • Procedure after termination;
  • Summary termination;
  • Reconstruction or amalgamation;
  • Data protection;
  • Severance and invalidity;
  • Schedule: Bonus system.
Sample directors service agreement (employment contract)Front cover
Click to View Sample

Recent reviews

Great Service
14 June 2023
Leonard Ansorge
Review of the Indian version
Great Service
20 February 2023
Agreements water tight
The notes what to do and what not to do
Saved legal costs
Nesta Glover
Great Service
20 February 2023
No concern
Agreements were water tight and self explanatory
The notes advising you what to do and not to do
Saved a lot of legal costs using a local attorney
Most definately
Nesta Glover
Read all 13 reviews

Choose the level of support you need

Document Only

Complete the document template yourself using our guidance notes
R599.00
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
Recommended

Lawyer Assist

Support from our legal team during and after editing
193 Reviews
R3,598.00
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
  • okUnlimited email support - ask our legal team any question related to completing the document
  • ok
    Review of your edited document by our legal team including:
    • reporting on whether your changes comply with the law
    • answering your questions about how to word a new clause or achieve an outcome
    • checking that your use of defined terms is correct and consistent
    • correcting spelling mistakes
    • reformatting the document ready to sign
© 2000 - 2024 Net Lawman Limited.
All rights reserved