Director Service Agreements
What is a Director Service Agreement?
Directors’ service agreements will usually address most of the principal terms of the director’s employment but will often need to be read in conjunction with the company’s employee handbook (which will contain company policies) and any pension plan and executive incentive plan rules. The service agreement will address factual details such as hours and place of work, salary and benefits, the director’s duties, confidentiality and intellectual property rights, grounds for termination and consequences of termination and, finally, any restrictions on his activities after the end of his employment
What should a director’s service agreement include?
A director’s service agreement can also include additional provisions covering the following areas:
- Duties and responsibilities of the director to the company;
- Holiday entitlements;
- limitations on business or professional activities outside of employment;
- Long term sickness arrangements;
- Main place of work, possible future change of location, need for business travel;
- Notice provisions including circumstances where the service agreement may be terminated by the company without notice;
- Pay and benefits details: salary, bonus schemes, share options, medical insurance, life and disability insurance, pensions, company car;
- Resignation of Director;
- Restrictive covenants that may apply when the director leaves the company;
Our Business Law Experience
At My Business Counsel we have the sound legal expertise to work with you and the needs of your business to draw up a detailed and comprehensive agreement that will cover any eventuality and protect you from the pitfalls of a badly drawn agreement.
We can provide you with a free 20 minute phone consultation to discuss your requirements and promise to provide you with clear advice upon the cost of the work that you may need.