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Directors service agreement (employment contract)

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This document is a complete legal and practical framework for the employment of any executive director.

It balances protection for the director with protection for the company. If there is a difference in interests, the document favours the company, often because these provisions are required to comply with the law.

The document is suitable for:

  • any executive director (including a Managing Director, CEO, CFO, CTO or Chairman) of any company
  • senior management of charities and NGOs
  • directors employed full or part time, on running contracts or fixed terms

Strong and precise terms protect the company’s intellectual property and other secrets.

All common perquisites such as salary and benefits are covered.

The explanatory notes, which come with these documents, will guide you as to the importance of specific issues.

Suitable for use in: England & Wales and Scotland

£46.80 inc VAT
(£39.00 ex VAT)
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First page of a non-executive directors service agreement

Non-executive director's service agreement

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This non-executive director's service agreement makes clear that the contract is not of employment, but for services - similar to a consultancy agreement.

It will help to protect the board from criticism and the director from unreasonable demands.

This document is suitable for:

  • for any non-executive, part-time company director, or director-level equivalent in a charity or other organisation
  • fixed terms of appointment or rolling contracts
  • the whole question of the tax status of a non-executive depends on the other activities of the director. Nothing we provide in this contract will guarantee that HMR&C will treat her/him as self employed.

This document is:

  • Up to date with the latest changes in company law
  • The employer's confidential information is protected, but in order to emphasise the self employed status of the director, this version does not cover every obligation of the director in the same way that an executive director contract does. It is assumed that a non-executive is expected to work in a rather more informal environment
  • Structured so as to minimise the administrative burden of legal compliance

Suitable for use in: England & Wales and Scotland

£36.00 inc VAT
(£30.00 ex VAT)
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First page

Unpaid non-executive director's service agreement

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This is a contract for services for an unpaid, part-time director who provides advice, balance and support to the organisation on a voluntary basis.

The document makes clear that there is no contract of employment.

It is suitable for:

  • for any non-executive director in a company, or director-level equivalent in a charity or other organisation
  • appointments of fixed or rolling terms

Suitable for use in: England & Wales and Scotland

£36.00 inc VAT
(£30.00 ex VAT)

Clarity about the nature of the contractual relationship

An executive director used to have a “service agreement”. Today a company is under a statutory obligation to provide written terms of employment, just as it is to any other employee, and even if the director is the sole owner of the company.

A non-executive director is not an employee of the organisation, and therefore requires a contract that preserves his or her self-employed status and clarifies that the work he or she performs is in the nature of consultancy rather than executive employment.

Accordingly, the greatest differences between our directors’ service contracts relate not to what position the director holds, or what he or she does, but to his or her contractual relationship with the company.

All these agreements are therefore suitable:

  • for use by any type of organisation: company, charity, trust, partnership, governmental organisation or other
  • for use with directors holding any position within the organisation
  • for permanent and fixed terms of appointment

What these agreements cover

In addition to the terms that set out the relationship of employment or self-employment, there are many other matters that should be agreed in a contract.

Our documents:

  • are up to date with current applicable employment law
  • follow current best practice disciplinary procedures recommended by ACAS and other bodies
  • help protect the company from claims both in an Industrial Tribunal and in court as a result of a common law dispute
  • protect the director from unreasonable demands by other directors and shareholders
  • set out remuneration and benefits
  • cover what happens at termination, and in case of redundancy
  • include strong protection for the organisation’s intellectual property
  • minimise the administrative burden of legal compliance

Some of the provisions are required to comply with the law. Others are practical. The explanatory notes, which come with these documents, will guide you as to the importance of specific issues.

These contracts provide a balance between protection for the company and for the director. If there is a difference in interests, we favour the company.

Why choose Net Lawman

Immediate delivery of the document template by e-mail after checkout
DocX file format compatible with all popular PC & Mac word processing software. We can convert into other formats for you
Use of plain English makes our documents easy to edit and understand
Detailed guidance notes explain the purpose of each paragraph and how to edit
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