Senior Employment Contract – no payment in lieu

Executive Employment Contract no PILON


The Executive Employment Contract no PILON is suitable for senior management employees where confidentiality and non-compete clauses are important. This Senior Employment Contract should be enclosed with the offer letter.

This contract has been recently updated to include new and improved clauses providing enhanced protection for the employer.

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 and exclusivity of service.

The absence of a payment in lieu clause enables the employer to make payments "tax free" in exchange for the employee not working his contractual notice. However, in doing so, the employer would be in breach of the employment contract, and therefore dilute the effectiveness of any restrictive covenants.

The Schedule to the 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.

It is important that the restrictive covenants are no wider than is necessary to protect your “legitimate business interests”, otherwise they may be unenforceable. Please consider each restrictive covenant carefully, and remove any that are not relevant to your particular business and to the employee in question. For those remaining, insert time limits and geographical limits that are appropriate and reasonable to the nature of your business.

Please note that if the schedule is tailored to match the particular employee it is more likely to be deemed reasonable and therefore more likely to be enforceable. Using identically worded restrictive covenants for different employees without tailoring themto the individual may encourage a court to interpret the restrictive covenants as unreasonable.

This 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. Remuneration, Expenses and Deductions
7. Company Car
8. Holidays
9. Sickness Absence
10. Anti-Bribery
11. Pension
12. Non-Compulsory Retirement
13. Health Insurance and Other Benefits
14. Maternity Leave
15. Paternity Leave
16. Exclusivity of Service
17. Confidential Information
18. Copyright, Inventions and Patents
19. Grievance Procedures
20. Discipline
21. Termination of Employment
22. Gardening Leave
23. Company Property
24. Restrictions after Termination of Employment
25. Data Protection
26. Changes to Terms and Conditions of Employment
27. Severability
28. Governing Law

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.

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 these 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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