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
Review service available - a Net Lawman lawyer can check your edited document
Full money back guarantee if the document isn't right for you
Create your director's service agreement online
Answer simple questions in our web-based questionnaire
We create a document tailored to your requirements
Our detailed lawyer review process ensures that your document matches your instructions
We e-mail your document to you
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Price: £30.00 ex VAT (£36.00 inc VAT)

Suitable for use in: England & Wales and Scotland

When you use our online service, our software creates your document for you as soon as you have finished answering a questionnaire about the appointment of the director.

The questionnaire takes about 20 minutes to complete.

We save your answers every time you move to a new page, so if you want to take a break at any point, you can return later without having to start from the beginning.

When you have completed the questionnaire, you can choose for your agreement to be e-mailed to you immediately in Microsoft Word format (compatible with many different word processors), or you can arrange for an experienced lawyer to review your document so that you have confidence that it is legally sound.

If you choose our review service, we aim to check your template and return it to you within 72 hours.


This service can produce director's service agreements where the appointment is for:

  • an executive director
  • a non-executive director
  • an unpaid non-executive director

It is suitable for use by any type of company or organsation, from a private limited trading company to a charity.

The questionnaire covers:

  • terms of service and/or employment, including pay, location and office hours
  • responsibilities and obligations in office
  • entitlements and benefits
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