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.