Executive Employment Contract

Statutory Sick Pay (SSP) is now payable from the first full day of sickness absence. This contract has been updated to reflect this change.

This Executive Employment Contract is suitable for senior management employees where confidentiality and post-termination restrictions are important.

The matching offer letter is the Offer Letter – Senior Employee.

Use this contract to document senior-level terms from day one

Employers must provide workers and employees with a written statement of their main terms and conditions of employment, often known as a Standard Form Section One Statement.

This contract covers those requirements and must be provided to the employee or worker by day one of employment.

What does this executive employment contract cover?

Alongside core employment terms, including duties, pay, holidays, sickness absence, pension and termination, this contract includes additional provisions that are commonly needed for executive and senior management roles, including:

• a Working Time Regulations opt out;
• an annual salary review;
• benefits provisions, including company car and health insurance;
• anti-bribery obligations;
• exclusivity of service;
• confidential information protections; and
• a PILON (payment in lieu of notice) clause and gardening leave.

The PILON clause enables the employer to require the employee not to work during the notice period while retaining the validity of confidentiality and restraint of trade clauses.

Restrictive covenants for senior employees

The schedule to this contract contains three possible restrictive covenants:

• non-competition;
• non-solicitation of customers; and
• non-solicitation of employees.

The non-competition clause provides that, for a period of time after termination of employment, the employee will not compete with the company’s business. The non-solicitation clauses provide that, for a period of time after termination of employment, the employee will not deal with the company’s customers with whom the employee has had dealings and cannot poach employees of the company.

Restrictive covenants should be no wider than is necessary to protect your “legitimate business interests”. If their scope is too wide, they may not be enforceable.

Please ensure that you carefully consider each restrictive covenant, removing any that are not relevant to your particular business and to the specific employee. Ensure that time and geographical limits are appropriate and reasonable to the nature of your business.

Executive Employment Contract is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.