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Legal Document

Director’s Service Agreement

£79.00

Director’s Service Agreement? Use this document to decide and explain what your company expects from a director.

A company is a separate legal body. A director is employed by the company and is responsible for the everyday running of that company. Like any employee, a director must have a written employment contract with the company. This is called a Director’s Service Agreement.

Your company and business is very vulnerable if you don’t have one. For example,

  • What  would happen if a former director set up in competition with your company?
  • How can you end the agreement if things don’t work out?

Do you really want to put your company and your business at risk without a Director’s Service Agreement?

 

— OR —

Categories: Business Savvy Legal Documents, Employment
  • Description

Description

What is a Director’s Service Agreement?

A Director’s Service Agreement is a type of employment contract between the company and the director.

Why do I need a Director’s Service Agreement? 

Firstly, as an employer, a company must give the director important information about their employment. Both the company and the director to understand and agree the director’s role.

Secondly, having a written agreement makes this much easier and clearer. It means you can explain:

  • Basic information – like the director’s hours of work, salary.
  • What’s expected from the director – their duties and responsibilities.
  • Arrangements for things like sickness and holidays.
  • What happens if things go wrong – discipline and grievance.
  • Ending the relationship – including notice periods and payment.
  • Protecting the company by explaining what a former director can and can’t do once they’ve left.
  • The Director’s legal responsibilities. 

 

What’s in the Director’s Service Agreement? 

This agreement comes with notes and guidance. You can tailor it to meet the needs of your company. It’s WORD document so it’s easy to customise. It includes:

  • Duties – including Job Performance obligations and statutory duties.
  • Basic information such as hours of work, pay, expenses and other benefits.
  • Holiday, sickness and disciplinary.
  • Intellectual Property Protection.
  • Data Protection and confidentiality.
  • Termination of the agreement.
  • Restrictive covenants – what the director can and can not do after they have left the company
Need other documents? 

Don’t forget, your director is an employee so you need an employee handbook.

If your director is a shareholder, you need a Shareholders’ Agreement.

 

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