Director’s Service Contract – Fixed Salary (without PILON) + all Employment docs for £35 + Vat

		Employment Documents
		Employment Contracts Director’s Service Contract – Fixed Salary (without payment in lieu of notice) (EMP.RE.02.14)

Document Description

Directors’ Service Agreements are referred to as “Directors’ Service Contracts” in the Companies Act 2006 but the difference is in name only. This Director’s Service Contract – Fixed Salary (without PILON) contains the basic terms and conditions which may be used by a company in retaining a director. It does not include a payment in lieu of notice (PILON) clause. Officially, a director is an officer of the company and not an employee. As such, he or she has no right of remuneration unless the company's articles state otherwise. In theory, therefore, he or she will not need an employment contract or agreement. However, the director may also be employed in another capacity - e.g. as a finance or managing director. In that instance, he or she will be considered an executive director and will require an employment contract. This Director’s Service Contract – Fixed Salary (without PILON) includes the changes relating to the increase in the statutory holiday entitlement and payment in lieu of holiday in force since 1st April 2009. This Director’s Service Contract – Fixed Salary (without PILON) contains the following clauses: 1. Definitions and Interpretation 2. Appointment of the Executive 3. Duties of the Executive 4. Remuneration and Expenses 5. Collective Agreements A "collective agreement" is defined by the Trade Union and Labour Relations (Consolidation) Act 1992 as "any agreement or arrangement made by or on behalf of one or more trade unions and one or more employers or employers' associations and relating to one or more" of the seven matters specified in section 178(2) of the Act e.g. disciplinary matters, terms and conditions of employment, membership of trade unions etc. 6. Pension Companies with five or more relevant employees on their payroll, and which do not provide another qualifying scheme, are obliged to provide their employees with access to a stakeholder pension. Qualifying schemes are occupational schemes that are open to all employees within one year of starting work for the company, or personal pension schemes which all employees - except those under 18 - can join, and to which the company contributes at least 3 per cent of each member's basic salary. It must also be possible for employees to have their contributions deducted from their pay. Contributions can be less than £20 and should not be reduced due to transfer costs. 7. Holidays Since 1st April 2009, the statutory holiday entitlement of employees has been 28 days per annum (which includes public holidays). Payment in lieu of an employee’s statutory holiday entitlement is not permitted but payment in lieu may be made in respect of any excess holiday entitlement. 8. Sickness and Medical Examination 9. Maternity Leave 10. Paternity Leave 11. Company Car 12. Confidentiality 13. Intellectual Property 14. Termination 15. Gardening Leave 16. Consequences of Termination 17. Amalgamation and Reconstruction 18. Competition 19. Notices 20. Governing Law 21. Previous Agreements & Contracts 22. Supplemental Schedule: Grievance Procedures and Disciplinary Procedures A copy of every Director's Service Contract must be open to inspection with the company under section 228 of the Companies Act 2006 either at the company’s registered office or at the single alternative inspection location permitted under the Act (in the latter case, the company must notify the Company Registrar of the location of the Service Contracts). The copies must be retained by the company for inspection for at least one year following the date of termination or expiry of the Service Contract. Under section 188 of the Companies Act 2006, Directors’ Service Contracts with a guaranteed term which is (or may be) longer than 2 years must be approved by an ordinary resolution of the shareholders of the company. Determining the length of the guaranteed period is subject to complex rules. The guaranteed term of a director’s employment is either: (a) the period (if any) during which the director’s employment continues (or may be continued) except at the option of the company (whether under the original agreement or under a new agreement entered into in pursuance of the original agreement), and it cannot be terminated by the company by notice, or it can be terminated only in specified circumstances, or (b) in the case of employment which can be terminated by the company by notice, the period of notice required to be given. If the employment has a period within paragraph (a) and a period within paragraph (b), the aggregate of those periods will be the guaranteed term. If the company enters into a further service contract more than six months before the end of the guaranteed term of a director’s employment (except where the original contract gives the other party that right), then the unexpired period of the guaranteed term of the original contract will be added to the guaranteed term of the new contract. This Director’s Service Contract – Fixed Salary (without PILON) includes terms relating to the retention of the Director on a fixed salary. Where a contract with remuneration on a bonus scale scheme is required, please use “Director’s Service Contract - Including Bonus Share Option”. This Director’s Service Contract – Fixed Salary (without PILON) is in open format. Fields should be completed where indicated. Wording in square brackets is optional and can be deleted or retained according to requirements.

  Related Documents

Directors Employment Offer Letter

Director’s Service Contract – Fixed Salary (with Payment in Lieu of notice)

Director’s Service Contract - Including Bonus Share Option (without payment in lieu of notice)

Director’s Service Contract - Including Bonus Share Option (with payment in lieu of notice)

Retirement Date Letter