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Service agreements

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Sarah Everton from Employment Law team

Joanna Convey

Commercial Solicitor

 Email Joanna

Sarah Everton



Head of Employment Law

 Email Sarah

Service agreements are contracts of employment for directors who, by virtue of their position, are heavily involved in the management of a company and therefore require special terms and conditions over and above those that apply to other employees.

Examples of additional provisions include:

  • an obligation not to compete with the business interests of the company, both during employment and for a defined period afterwards;
  • an enhanced duty of confidentiality, particularly with regards to processes and procedures that are unique to the company or intellectual property rights;
  • a duty to resign as a director, and as a shareholder if appropriate, in the event a director’s employment with the company is terminated;
  • an obligation to return all company property within a defined period and to refrain from doing anything once termination has taken place which may suggest a continuing association;
  • enhanced duties to the employer;
  • an enhanced remuneration bundle, which may include entitlement to a salary and private pension, admission to a bonus scheme, the issue of share options and other benefits, such as a company car, medical and life insurance and the right to take a sabbatical after a fixed period of service; and
  • the right of the company to place a departing director on gardening leave during any period of notice.

With a service agreement, you can create a contract which is sufficiently attractive to senior personnel and which ensures that they act in the best interests of your business.

These agreements also provide the basic provisions for any employee such as working hours, holiday entitlement and notice periods.

For a confidential consultation

For advice on the protection of your business interests, please contact the company law team at Myers & Co Solicitors in Stoke-on-Trent, Staffordshire on 01782 577000.

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