Directors' Service Contracts Employment Offer Letters
Directors' service contract employment offer letters help employers make a clear written offer of employment for director-level appointments and confirm the key terms of the proposed role from the outset. They are intended to be issued with the matching director's service contract so that the offer, contractual terms and starting arrangements are consistent.
This collection is designed for appointments where the individual will be employed under a director's service contract. It is aimed at employers who need offer documentation that reflects the seniority of the role and the importance of recording the main employment terms clearly at the start of the relationship.
Preparing a director-level appointment
The Director's Employment Contract Checklist helps employers focus on the key points before completing the director’s service contract and issuing the offer documentation.
For a director-level appointment, the offer letter is only one part of the appointment paperwork. The relevant Directors Service Contracts should reflect the same role, remuneration, benefits and starting arrangements set out in the offer.
Offer letters for directors' service contracts
The Director's Employment Offer Letter is designed to accompany the relevant director's service contract, helping the offer letter, contractual terms and start arrangements remain consistent.
The letter is a crucial document for both the company and the employee because it outlines the key aspects of the working relationship, including the offer of employment, job title, workplace, remuneration, benefits and proposed start date.
Right to work checks and starting employment
These letters include a paragraph requiring the employee to provide evidence of their legal right to work in the UK and asking new joiners to bring identity documents and their P45 when they start employment.
Medical information and reasonable adjustments
Directors are also asked to advise the employer of any medical conditions, allergies or disabilities that they have. This is so the employer can consider any potential reasonable adjustments that may be appropriate in line with the Equality Act 2010.
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Frequently Asked Questions
Do I need a separate offer letter when appointing a director, or does the service contract on its own cover everything? +
A director's service contract sets out the full contractual terms, but issuing a separate offer letter before the contract is signed helps both parties confirm the offer, job title, workplace, remuneration and proposed start date in one clear document. The Simply-Docs Director's Employment Offer Letter is designed to accompany the relevant director's service contract so that the offer and contractual terms remain consistent. Using both documents together reduces the risk of discrepancies between what was agreed at the outset and what the contract records.
What should I work through before I finalise a director's service contract and issue an offer letter? +
Work through the Simply-Docs Director's Employment Contract Checklist before completing the service contract and issuing the offer documentation. This helps ensure the role, remuneration, benefits and starting arrangements are settled and consistent across both the offer letter and the contract. The checklist is only the starting point: the service contract itself must address additional matters such as duties under the Companies Act 2006 and any required shareholder approval if the guaranteed term will exceed two years.
We are appointing a director. Must we check their right to work in the UK before they start, and what does the offer letter say about this? +
Yes, provided the director is taken on as an employee. All employers in England and Wales must check that every new employee has the legal right to work in the UK before employment begins, regardless of seniority or nationality, including director-level appointments. This guidance applies where you employ staff under a contract of employment, service or apprenticeship, whether express or implied and whether oral or in writing. If the incoming director is not your employee, for example a non-executive director who is an office holder paid by fees rather than under a contract of employment, the statutory check duty and excuse do not apply, though it remains strongly advisable to check. The Simply-Docs Director's Employment Offer Letter includes a paragraph requiring the incoming director to provide evidence of their right to work and to bring identity documents and their P45 when they start. A correct check before employment begins establishes a statutory excuse against civil penalties under the Immigration, Asylum and Nationality Act 2006. GOV.UK sets out the accepted methods and documents.
The director I am appointing has disclosed a disability. What do I need to do, and does the offer letter help me with this? +
Under the Equality Act 2010 you must make reasonable adjustments for disabled employees and job applicants, a duty arising as soon as you know, or could reasonably be expected to know, about a disability. The Act prohibits asking health questions before a job offer is made, so the Simply-Docs Director's Employment Offer Letter, issued after the offer, asks the incoming director to advise you of any medical conditions, allergies or disabilities, letting you consider appropriate adjustments. Disclosure does not affect the right to work: adjustments must be considered on their merits.
How does a director's offer letter differ from a standard employee offer letter, and why does the distinction matter? +
Because director-level appointments raise considerations a standard employee offer letter does not, a director's offer letter must address duties under the Companies Act 2006 and, where the guaranteed term may exceed two years, shareholder approval under section 188. The Simply-Docs Director's Employment Offer Letter accompanies a director's service contract and stays consistent with it on remuneration, benefits and starting arrangements. Using a standard offer letter risks inconsistency with the service contract and may omit director-specific points.
What documents are in this Simply-Docs collection and how do they fit together for a director appointment? +
Use the Director's Employment Contract Checklist first to resolve the key points before completing the service contract, then issue the Director's Employment Offer Letter alongside the relevant director's service contract, confirming the offer, job title, workplace, remuneration, benefits and proposed start date. These two documents make up this Simply-Docs sub-folder; the service contracts themselves are in the separate Directors' Service Contracts section.
