Executive Employment Contract

This Executive Employment Contract is suitable for senior management employees where confidentiality and non-competition clauses are important.

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

This Contract covers the requirements of a Standard Form Section One Statement. This contract complies with these requirements and must be provided to the employee or worker by day one of employment.

Previously, a version of this employment contract was available without a PILON clause. This version has now been removed, as with effect from 6 April 2018, all PILONs, regardless of their nature, are to be treated as earnings subject to income tax and Class 1 NICs. Click here for more information.

The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.

Along with all the standard employment contract clauses, such as sickness, holiday, retirement, pension etc, this Executive Employment Contract contains a number of special clauses that are appropriate to employees working at a senior level, including a Working Time Regulations opt out, an annual salary review, clauses covering benefits, car and health insurance, anti-bribery, exclusivity of service and a 'PILON' or 'payment in lieu of notice' clause.

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

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 can’t 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.

The Executive Employment Contract contains the following clauses:

1. General
2. Date of Commencement/Continuous Employment
3. Duties
4. Hours of Work
5. Place of Work
6. Work outside the UK
7. Remuneration, Benefits, Expenses and Deductions
8. Company Car
9. Holidays
10. Other paid leave
11. Training
12. Sickness Absence
13. Anti-Bribery
14. Pension
15. Non-Compulsory Retirement
16. Health Insurance and Other Benefits
17. Maternity Leave
18. Paternity Leave
19. Exclusivity of Service
20. Confidential Information
21. Restrictive Covenants
22. Copyright, Inventions and Patents
23. Grievance Procedures
24. Discipline
25. Termination of Employment
26. Gardening Leave
27. Company Property
28. Staff Handbook and Employment Policies
29. Data Protection
30. Changes to Terms and Conditions of Employment
31. Severability
32. Governing Law
33. Right to Work in the UK

This contract is in open format. Fields should be completed where indicated.

Clauses with optional and alternative phrases

Options and alternatives appear in blue font. The way in which this document is designed ensures that it will make sense with or without the optional clauses. Tailor this contract by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.

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