Managing Director Contract Of Employment Template for England and Wales

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Key Requirements PROMPT example:

Managing Director Contract Of Employment

"I need a Managing Director Contract Of Employment for a tech startup based in London, with particular focus on share options and IP protection, planned start date March 2025."

Document background
The Managing Director Contract Of Employment is essential when appointing senior executives in companies operating under English and Welsh law. This contract type is specifically tailored for director-level appointments, combining standard employment terms with specific provisions required for board-level positions. It addresses key areas including fiduciary duties, strategic responsibilities, executive compensation, and corporate governance requirements. The document ensures compliance with UK company law while protecting both the company's and the director's interests.
Suggested Sections

1. Parties: Identification of the company and the managing director

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Role specifics, commencement date, and duration

5. Duties and Responsibilities: Detailed description of MD's role and obligations, including statutory and fiduciary duties

6. Remuneration: Salary, benefits, pension arrangements and review procedures

7. Working Hours and Location: Expected time commitment and place of work

8. Holiday Entitlement: Annual leave and public holidays

9. Expenses: Policy on business expenses and reimbursement

10. Termination: Notice periods, grounds for termination, and payment in lieu of notice

11. Confidentiality: Protection of company information and trade secrets

12. Data Protection: Compliance with data protection laws and privacy regulations

13. General: Miscellaneous provisions including governing law and entire agreement

Optional Sections

1. Share Options: Details of any share schemes or equity participation arrangements

2. International Travel: Requirements and arrangements for international business travel

3. Garden Leave: Terms and conditions of garden leave during notice period

4. Post-termination Restrictions: Non-compete, non-solicitation, and other restrictive covenants

5. Intellectual Property: Rights and obligations regarding IP created during employment

6. Corporate Governance: Additional governance requirements for listed companies

Suggested Schedules

1. Schedule 1 - Job Description: Detailed outline of responsibilities and expectations

2. Schedule 2 - Bonus Scheme: Details of performance-related compensation and metrics

3. Schedule 3 - Company Policies: List of key policies the MD must comply with

4. Schedule 4 - Benefits Package: Comprehensive breakdown of additional benefits

5. Schedule 5 - Share Option Terms: Terms and conditions of any share options or equity arrangements

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

Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing director responsibilities, including statutory duties, corporate governance requirements, and disclosure obligations

Employment Rights Act 1996: Fundamental employment legislation covering basic employment rights, notice periods, unfair dismissal provisions, and mandatory statement of employment particulars

Equality Act 2010: Legislation ensuring protection against discrimination, equal treatment provisions, and reasonable accommodations in the workplace

Data Protection Act 2018 and UK GDPR: Laws governing personal data handling, privacy rights, and data protection obligations for organizations and their directors

Working Time Regulations 1998: Regulations covering working hours, holiday entitlement, and rest break requirements, though directors may opt out of some provisions

National Minimum Wage Act 1998: Legislation setting minimum pay requirements, though typically not directly relevant for Managing Director level positions

Pensions Act 2008: Legislation covering auto-enrollment requirements and pension scheme obligations for employers and senior management

Health and Safety at Work Act 1974: Law establishing safety responsibilities and management obligations for workplace health and safety

Corporate Governance Code: Non-statutory guidelines particularly relevant for listed companies, setting out corporate governance best practices

Financial Services and Markets Act 2000: Specific legislation applicable if the company operates in financial services sector, governing regulatory compliance and conduct

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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