Non-exec director service contract: unpaid

This includes the Director’s Service Contracts. This document is suitable for use by the board or governing body of a company, hospital trust, charity or other organisation agreeing terms with a new director or changed terms with an existing office holder or an individual director wishing to write his own contract in terms which specifically suit him.  It has been drafted for an unpaid, non-executive director of a charity, QUANGO or other organisation.

Gone are the days when a director's service contract merely reflected the "deal" for the employment. Today a company is under a statutory obligation to provide written terms of employment to a director, as to any other employee. Of course it is advantageous to both sides to set down the employment package in a contract, rather than in a few words from the company.

This document provides a balance between protection for the director and for the company. If there is a difference in interests, we have favoured the company.  Some of these provisions are required to comply with the law. The explanatory notes, which come with these documents, will guide you as to the importance of specific issues.