Directors' service contracts

Our directors' service contracts are sharp and clear. For the executive director involved in the day to day management of the company, employment terms have been combined with provisions that provide additional protection for the company required for someone at the most senior level of the management structure. Our set also includes more traditional service agreements for self-employed, non-executive directors and for an unpaid 'non-exec', as may be needed by a charity.

Templates

Directors service agreement (employment contract)

13 Reviews

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.

Non-executive director's service agreement

8 Reviews

This non-executive director's service agreement is a contract for services of a elf-employed, part-time director. It makes clear no contract of employment. It can be used for a fixed term or a running contract for a company director, or director-level equivalent in a charity or other organisation. It provides particularly strong protection of company information.

Unpaid non-executive director's service agreement

3 Reviews

This non-executive director's service agreement is a contract for services for an unpaid, part-time director. It makes clear no contract of employment. It can be used for a fixed term or a running contract for a company director, or director-level equivalent in a charity or other organisation. It provides particularly strong protection of company information.

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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.

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Clarity about the nature of the contractual relationship

An executive director used to have a “service agreement”. Today a company is under a statutory obligation to provide written terms of employment, just as it is to any other employee, and even if the director is the sole owner of the company.

A non-executive director is not an employee of the organization, and therefore requires a contract that preserves his or her self-employed status and clarifies that the work he or she performs is in the nature of consultancy rather than executive employment.

Accordingly, the greatest differences between our directors’ service contracts relate not to what position the director holds, or what he or she does, but to his or her contractual relationship with the company.

All these agreements are therefore suitable:

  • for use by any type of organization: company, charity, trust, partnership, governmental organization or other
  • for use with directors holding any position within the organization
  • for permanent and fixed terms of appointment

What these agreements cover

In addition to the terms that set out the relationship of employment or self-employment, there are many other matters that should be agreed in a contract.

Our documents:

  • are up to date with current applicable employment law
  • protect the director from unreasonable demands by other directors and shareholders
  • set out remuneration and benefits
  • cover what happens at termination, and in case of redundancy
  • include strong protection for the organization’s intellectual property
  • minimize the administrative burden of legal compliance

Some of the provisions are required to comply with the law. Others are practical. The explanatory notes, which come with these documents, will guide you as to the importance of specific issues.

These contracts provide a balance between protection for the company and for the director. If there is a difference in interests, we favour the company.

What customers thought
Great Service
Agreements water tight
The notes what to do and what not to do
Saved legal costs
Nesta Glover
Great Service
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
Great Service
Strong framework to work off for a Non-executive director service agreement. Saved me both time and money.
Rowan Williams
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