Manager Employment Contracts
The Manager Employment Contract is intended for use when you want more than the Basic/Statutory Minimum Employment Contract, but do not need all the restrictive covenants you will find in the Senior Employment Contract. Restrictive covenants are clauses which are intended to protect a legitimate business interest e.g. a client connection. Instead, these Manager Employment Contracts include a confidentiality clause and exclusivity of service clause.
The Manager Employment Contract includes a clause whereby the Manager can opt out of the Working Time Regulations. This means that the employee agrees that the Working Time Regulations, which limit average working time to 48 hours in a seven-day period (averaged over a 17-week period) shall not apply to them.
There are four different versions of this contract:
- Manager Employment Contract with Accommodation and PILON
- Manager Employment Contract with Accommodation no PILON
- Manager Employment Contract with PILON
- Manager Employment Contract no PILON
You should include a payment in lieu of notice (PILON) clause if you want to have the option of making a payment instead of allowing the employee to continue working their full notice period. The PILON would cover salary until the end of the notice period together with the cash equivalents of any benefits in kind. The benefit of a PILON clause is that you are able to request the employee to leave immediately without breaching the contract of employment and therefore the integrity of the confidentiality and exclusivity clauses.
Whilst we refer to this contract as a Manager Employment Contract, it could be used for PAs who have access to confidential information but for whom restraint of trade clauses would not be appropriate.
The Manager Employment Contract with Accommodation can be used by employers who provide living accommodation as part of an employment contract. This will be useful for positions such as pub or restaurant managers, where the provision of living accommodation is either essential for the proper performance of an employee’s duties, or living accommodation is provided for the better performance of the employee’s duties.
The Manager Employment Contract with Accommodation contains clauses that allow the company access to the property at any time, and provide for the company to pay any rent on the property. Please be aware that if these clauses are taken out, it is possible that an employee may claim that they have exclusive possession of a property they pay rent for, which may be deemed a tenancy.
In many cases, the accommodation will fall under an exemption that means that the employee is not liable to pay tax on the cost of the accommodation. However, if it does not fall under an exemption, you should be aware that it may be deemed a benefit in kind and could be taxable. Please refer to the HMRC guidance for more details.
The Manager Employment Contract is compliant with both the Employment Rights Act 1996, the Employment Act 2002 and the Working Time Regulations 1998.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.