Director Employment Contract Template for Germany

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Key Requirements PROMPT example:

Director Employment Contract

"I need a Director Employment Contract for appointing a new CFO to our German technology startup, starting January 1, 2025, with specific provisions for stock options and potential IPO scenarios."

Document background

The Director Employment Contract is a crucial document used when appointing executive directors (Geschäftsführer) in German companies, whether in a GmbH (limited liability company) or AG (stock corporation). This contract type is essential for establishing the legal relationship between the company and its directors, addressing both corporate and employment law aspects unique to the German jurisdiction. It must comply with various German regulations, including the Civil Code (BGB), Limited Liability Companies Act, and Corporate Governance Code. The document typically includes detailed provisions on responsibilities, remuneration, reporting structures, and post-employment restrictions, while considering specific German legal requirements such as co-determination rules for larger companies and mandatory corporate governance structures.

Suggested Sections

1. Parties: Identification of the company and the director, including full legal names and addresses

2. Background: Context of the appointment, including company details and the basis for hiring the director

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Details of the director position, appointment date, and duration of the contract

5. Duties and Responsibilities: Comprehensive outline of the director's roles, obligations, and scope of authority

6. Working Time and Place of Work: Specifications regarding working hours and location, acknowledging executive status

7. Remuneration: Base salary, bonuses, and other financial benefits

8. Benefits and Expenses: Additional benefits, expense policies, and reimbursement procedures

9. Vacation and Leave: Annual leave entitlement and procedures for taking time off

10. Confidentiality: Obligations regarding company secrets and confidential information

11. Intellectual Property: Assignment of IP rights and related obligations

12. Non-Competition and Non-Solicitation: Post-employment restrictions and their geographical/temporal scope

13. Data Protection: Compliance with GDPR and German data protection laws

14. Termination: Grounds for termination, notice periods, and procedures

15. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

Optional Sections

1. Shareholding Provisions: Required when the director holds or will hold shares in the company

2. International Travel: Necessary for roles requiring significant international responsibilities

3. Corporate Governance Compliance: Additional requirements for listed companies or regulated industries

4. Secondary Employment: Provisions regarding other business activities or board positions

5. Insurance Coverage: Specific provisions for D&O insurance and other coverage

6. Representative Authority: Detailed provisions on signing authority and power of representation

7. Compliance with Industry Regulations: Required for regulated industries like financial services

8. Integration with Shareholders' Agreement: Needed when the director is also a shareholder

9. Change of Control: Special provisions in case of company sale or merger

Suggested Schedules

1. Schedule 1: Remuneration Details: Detailed breakdown of salary, bonuses, and payment structures

2. Schedule 2: Benefits Package: Comprehensive list of benefits including pension, insurance, car allowance

3. Schedule 3: Performance Targets: Specific KPIs and bonus-related performance metrics

4. Schedule 4: Company Policies: Key company policies applicable to the director

5. Schedule 5: Approved Secondary Appointments: List of pre-approved external positions or commitments

6. Appendix A: Job Description: Detailed outline of role and responsibilities

7. Appendix B: Share Option Scheme: Details of any share options or equity participation

8. Appendix C: Corporate Authority Matrix: Breakdown of decision-making and approval authorities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Retail

Professional Services

Energy

Real Estate

Telecommunications

Automotive

Chemical Industry

Construction

Media and Entertainment

Logistics and Transportation

Consumer Goods

Relevant Teams

Legal

Human Resources

Corporate Governance

Board Secretariat

Compliance

Finance

Executive Office

Corporate Affairs

Risk Management

Relevant Roles

Managing Director (Geschäftsführer)

Executive Director

Board Member (Vorstand)

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Chief Technology Officer

Chief Marketing Officer

Regional Director

Division Director

Country Manager

Executive Vice President

Senior Managing Director

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Agreement Between Company And Employee

German law-compliant employment agreement establishing terms and conditions between employer and employee, incorporating essential protections under German labor legislation.

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Let's create your Director Employment Contract

Authors

Alex Denne

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