Director's Service Agreement for England and Wales. CA 2006 duties, enhanced notice, PILON and post-termination restrictions. From £4.99.
A Director's Service Agreement is the contract under which an executive director provides services to a company. It is part employment contract, part appointment instrument, governed by both the Employment Rights Act 1996 and the Companies Act 2006.
Every executive director of a UK company should have a written service agreement. Non-executive directors typically have a separate letter of appointment because they are office-holders rather than employees. Companies Act 2006 section 188 requires shareholder approval for service contracts that have a guaranteed term of more than two years.
Role and duties (referencing CA 2006 sections 171–177 directors' duties), board obligations and committee responsibilities, remuneration and benefits, enhanced notice periods, garden leave, payment in lieu of notice, post-termination restrictions (non-compete, non-solicit, non-deal) proportionate to the role, and the standard employment terms.
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