Director Employment Contract Template for Australia

The Director Employment Contract is a fundamental document used when appointing executive directors or managing directors to Australian companies. It serves as the primary agreement governing the employment relationship between the company and its director, incorporating essential elements required under Australian corporate and employment law. This contract type is particularly important as it must balance standard employment provisions with specific requirements under the Corporations Act 2001 (Cth) and other relevant legislation. The document typically includes detailed terms regarding remuneration, duties, performance expectations, and protection of company interests, while ensuring compliance with ASX requirements for listed companies and addressing corporate governance best practices.

1. Parties: Identification of the company and the director entering into the agreement

2. Background: Context of the appointment and any relevant company information

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Appointment and Term: Details of the director's role, position, and duration of appointment

5. Duties and Responsibilities: Comprehensive outline of director's duties, including statutory obligations and specific role requirements

6. Time Commitment and Location: Expected working hours, location, and travel requirements

7. Remuneration and Benefits: Base salary, bonuses, equity arrangements, and other benefits

8. Leave Entitlements: Annual leave, personal leave, long service leave and other leave provisions

9. Expenses: Reimbursement of business expenses and related procedures

10. Company Policies and Procedures: Obligation to comply with company policies and procedures

11. Confidentiality: Protection of confidential information during and after employment

12. Intellectual Property: Ownership and protection of IP created during employment

13. Conflicts of Interest: Management and disclosure of potential conflicts

14. Termination: Circumstances and procedures for ending the employment relationship

15. Post-Employment Obligations: Restraint of trade and other post-employment restrictions

16. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

17. Execution: Signing provisions and execution blocks