Helping you fully understand all of the terms, obligations and restrictions of your contract or service agreement, as a senior executive or director At a glance
- When you enter into a new contract or service agreement or if your terms of employment change, it is essential that you are aware of all the terms and how they affect you.
- This includes how any incentives are provided, your responsibilities as a director or senior executive and restrictions that may be imposed when you leave the company.
- We can guide you through your contract step by step, making all the terms clear and helping you negotiate before you sign, to put you in the strongest possible position for the future.
As a director or senior executive, it’s likely that your contract or service agreement will include a range of benefits, such as bonuses, share incentives, private health insurance and a company car and allowance. With these incentives there will also be extra responsibilities, so it is highly advisable to have an expert check your contract and/or service agreement, to ensure you are satisfied with the terms and fully aware of all your obligations. The latter may include restrictions that apply after you’ve left the company, such as covenants and confidentiality clauses.
Whether you are joining a company and have a new contract or service agreement or the terms of your employment have changed, your position will be much stronger if you have a specialist employment solicitor scrutinise the terms before you sign. Once you have signed, you are bound by the terms and further negotiation is usually very difficult.
Our team has broad experience of advising directors and senior executives on their contracts and service agreements. This includes closely examining and making you aware of the express and implied terms, and explaining the ramifications of incentives such as share agreements.
Shares as incentives
An incentive frequently offered to senior executives is the opportunity to own shares in your employer’s business. If you take up this option, you should be given a shareholder’s agreement, which sets out your relationship with the business as a shareholder. Although it is separate from your service agreement, it could still include provision to have you removed from the business if there is a dispute. If this happens you could potentially lose your shares, so it is vital that we check your shareholder’s agreement and service agreement together, to ensure you have the protection you need.
Our team will take the time to work through your contract and service agreement with you step by step, to ensure you are fully aware of all the terms and their implications. We can help you by ensuring the contract does not seek to limit any of your legal rights, to put you in the best position possible.
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Katherine Maxwell | 20.03.2020
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