Manager Employment Contract
This Manager Employment Contract is intended for use where you need more detailed provisions than those in the Statutory Minimum Employment Contract, but do not require all the restrictive covenants included in the Executive Employment Contract. Instead, it includes a tightly drawn confidentiality clause and an exclusivity of service clause.
This Employment Contract covers the requirements of a Standard Form Section One Statement and must be provided to the employee or worker by day one of employment.
Working patterns and travel
The contract makes clear that the employee must work flexible hours and will not be entitled to overtime pay. It also provides that the employee may be required to travel within the UK and overseas.
There are optional clauses relating to a bonus scheme and a company car.
PILON and garden leave
The contract includes a PILON (payment in lieu of notice) clause, allowing the option of making a payment instead of requiring the employee to work their full notice period. The PILON would cover salary to the end of the notice period together with the cash equivalents of any benefits in kind.
The benefit of a PILON clause is that the employee can be required to leave immediately without breaching the contract, helping to preserve the effectiveness of the confidentiality and exclusivity provisions.
There is also an optional garden leave clause. Garden leave is where the employee is required to serve out the notice period at home, and can be used as an alternative to making a payment in lieu of notice on termination.
Related updates
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.
This Manager Employment Contract is compliant with the Employment Rights Act 1996, the Employment Act 2002 and the Working Time Regulations 1998.
Manager Employment Contract is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.