Manager Employment Contract
This Manager Employment Contract is intended for use when you want more detailed provisions than are to be found in the Statutory Minimum Employment Contract, but do not need all the restrictive covenants you will find in the Executive Employment Contract. Instead, this contract includes a tightly drawn confidentiality clause and an exclusivity of service clause.
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.
The contract makes it clear that the employee needs to work flexible hours, and will not be entitled to remuneration for overtime. It also states that the employee may be required to travel, within the UK and overseas. There are optional clauses relating to bonus scheme and company car.
This Manager Employment Contract is compliant with the Employment Rights Act 1996, the Employment Act 2002 and the Working Time Regulations 1998.
The contract includes a PILON or “payment in lieu of notice” clause. 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.
There is also an optional Garden Leave clause. Garden leave is where the employee is required to serve out the notice period at home, which can be used as an alternative to making a payment in lieu of notice on termination.
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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