Service agreement for a director
- Customisable to your needs
- Works seamlessly with our template staff handbook and HR policies
- Provides key protections for your business
You can use this template director's service agreement as a contract of employment for a director. If you need an agreement for a director who is not an employee, use our template Director's letter of appointment instead.
Your company's relationship with its director is a vital part of the smooth running of the business. It is essential that you have a proper director's service agreement in place to protect your business properly and make sure your directors are clear on their role and responsibilities.
If a director is also an employee of your company, it is a legal requirement that you have at least a basic written contract covering key terms like pay, hours and holidays.
As well as making things clear for your directors during their time with your business, this template service agreement contains key clauses to help protect your business when they depart, eg safeguarding any confidential information and intellectual property.
Q&A
When should I use this document?
This director's service agreement is appropriate for use when your director is to be an employee of your company. Director/employees are also known as executive directors.
For non-executive directors the legal requirements are different - see our Directors' letter of appointment instead.
What does this document cover?
This service agreement for a company director is designed to work with our Staff handbook and policies.
It includes:
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basic information that you are legally required to give to employed directors (pay, hours etc);
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provisions preventing the director from being a director of another business without your agreement;
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reminders of key duties that the director owes, eg to tell the board about possible conflicts of interest and to act in your company's best interests; and
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protections for your business to safeguard confidential information, intellectual property etc if the director leaves.
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Why do I need this document?
It is essential that any employed directors are clear about the terms under which they are working for you. Directors in particular are likely to have a lot of power and influence within your company, which similarly means they are able to do a lot of damage if things are not run well, or if they leave and want to work with or set up a competing business.
Having a properly written service agreement for your directors will help you avoid these sorts of problem down the line.
Where can I find out more?
For detailed Q&A guidance, including the process for approving your director's service agreement, and the record keeping associated with it, see Directors' agreements.
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