An employment contract with a director has some peculiarities in its execution, in the order of conclusion, termination, and also part-time employment. This is due to the fact that the legal status of the director is somewhat different from other employees of the organization and is associated with the specifics of his activities.
Instructions
Step 1
A director is a person who performs management functions in an organization, and also plays the role of an executive body in a single person, in cases provided for by law. A director may also be referred to as the CEO or president of the company.
Step 2
An employment contract with a director, unlike other categories of employees, can only be concluded by a legal entity. Typically, directors are elected to office by voting. In some cases, a person applying for the position of director must be competitively selected. These procedures necessarily precede the signing of an employment contract.
Step 3
When concluding an employment contract with a director, it should be remembered that there should not be a clause on a probationary period in it. If the director is appointed to another position, then he may be assigned a probationary period of not more than 6 months. The term of the contract with the director is usually indicated in the constituent documents of the organization, while it cannot exceed 5 years.
Step 4
The labor contract with the director must include clauses concerning his functions, powers and responsibilities, remuneration, working hours and rest time, guarantees and compensations. It is also necessary to indicate the points relating to the observance of the commercial secrets of the company, and the terms of liability.
Step 5
The director of the organization, with the permission of the employer, can hold positions in other companies, i.e. work part-time. This condition must be included in the contract, if the second job takes place.
Step 6
The employment contract must be signed by the owner of the organization or another person authorized to do so. The director cannot act simultaneously as an employee and employer of the company, therefore he has no right to sign the contract in this way.
