Executive Employment Agreement

$129.00 inc. GST

 Last Updated March 4, 2020
  All Australian States & Territories

★ Employment contract for Directors, C-level Executives and Senior Managers

★ Provide clarity to both the employer and employee about their rights and obligations

★ Peace of mind that your business is legally protected

★ Drafted in plain English by Australian lawyers

★ Complete our Exeuctive Employment Agreement template in under 10 minutes

What is an Executive Employment Agreement?

An Executive Employment Agreement is a contract which is used to document your employment arrangement with an executive joining your company.

The main purposes of this contract are to:

🔸 cover the terms and conditions of employment

🔸 provide clarity to both the employer and employee about their rights and obligations

🔸 facilitate executive performance (including KPIs to encourage improved or higher performance)

🔸 protect the legal interests of both parties, particularly in the termination of employment

 

What does this Executive Employment Agreement template include?

Our Executive Employment Agreement template covers all of the important terms you need:

★ Employment – employment agreement

★ Duties  – title, compliance with policy and procedures, full time appointment

★ Remuneration – salary, bonuses, superannuation and expenses

★ Leave Entitlements – entitlements for annual leave, personal/carers’ leave and other leave types

★ Confidentiality – to protect confidential information belonging to the business

★ Intellectual Property – to protect intellectual property

★ Conflict of Interest – to prevent conflicts

★ Termination – how either party can terminate the agreement, including notice period

★ Restraint of trade – restraint clause to protect your business interests

★ Dispute Resolution – process to deal with disputes

★ Job Description – schedule with all key details for the job description

 

What is an executive employee?

An executive empoyee is anyone hired in a senior position at your company. This includes Directors, CEOs, CFOs, CIOs, General Managers and Senior Managers.

They generally have more responsibility and accountability than normal employees, and are responsible for managing a team or business function.

 

Do I need an Executive Employment Agreement contract?

Yes, absolutely! A contract protects both the employer and employee.

An employment contract will help to set the ground rules in black and white so everyone is clear on their obligations and how everything will work. You need a proper written contract to enforce your rights and make sure your business is legally protected in case something goes wrong.

 

Does this Executive Employment Agreement contract include a restraint clause?

Yes, it does.

A restraint of trade clause helps to protect your business interests. It prevents the ex-employee from soliciting or approaching your employees, contractors, clients and customers after they have ceased employment with your company.

Keep in mind that restraints of trade are only enforceable if you can prove that the restraint is necessary to protect your legitimate interests. This may not be the case if the restraint runs for an excessive period of time, covers a geographical area that is too broad, or extends beyond the industry in which you primarily operate.

 

Negotiating an Executive Employment agreement

It’s very common for executives to negotiate the terms of a contract before they accept a new role. Don’t be surprised if you receive a request to make some changes to the terms of the Employment Agreement.

As a company, you can make a commercial decision about any changes you will accept or not accept.

Common items which can be negotiated include:

🔹 Remuneration – including annual salary, bonuses and other entitlements

🔹 Leave entitlements – including annual leave, long service leave and parental leave

🔹 Notice period – required notice period for the employer or employee before terminating the agreement

🔹 Restraint of Trade – length of time, geographical area, any exemptions etc

🔹 Key Performance Indicators – any targets or KPIs which are set, and how they affect commissions or bonuses

🔹 Termination Payments – including share options or lump sum amounts

 

Are there any other names for an Executive Employment Agreement?

Yes, it’s also known as an Executive Employment Contract, Senior Executive Employment Agreement, Directors Employment Agreement, Executive Director Employment Agreement or CEO Employment Agreement.

All of them are basically the same thing, just different names for the contract you use with your executives employees.

 

Employer Obligations

We recommend that you consult the Fair Work website to read up on the National Employment Standards (NES) before you use this template.

Senior managers and executives are unlikely to be covered by any award or enterprise agreement, but they are still covered by the National Employment Standards.

These 10 standards relate to maximum hours of work, annual leave, personal leave, parental leave, flexible working arrangements, community service leave, long service leave, public holidays, notice/redundancy and the requirement that you be given a Fair Work Information Statement.

You can view a handy guide to hiring new employees HERE

 

Is my employee covered by an Award?

Awards apply to employers and employees depending on the industry they work in and the type of job worked. Every award has information about who it covers in the coverage clause (usually clause 4) and the job classifications (usually in the pay clause or a schedule).

There are more than 100 industry or occupation awards that cover most people who work in Australia. An employer can be covered by more than one award depending on the jobs the employees do.

You can use the Find My Award tool to check for award coverage on the Fair Work website. As stated above, it’s likely that executives will be “award-free”.

If you are unsure about the status of an employee, you should seek legal advice.

 

Is this Executive Employment Agreement template legally binding?

Absolutely!

All of our templates have been drafted by qualified Australian lawyers who hold an Australian legal practicing certificate.

We are affiliated with a commercial law firm based in Sydney.

Who is this for?

★ Companies looking to hire an executive

★ Directors

★ CEOs

★ CFOs

★ CIOs

★ Senior Managers

How does it work?

Our process is designed to be as easy as possible – you could be up and running in as little as 5-10 minutes.

1.  Select the Executive Employment Agreement template in the Shop and click Add To Cart.

2.  Proceed to Checkout and complete your purchase.

3.  You will receive an email with a download link immediately after you have completed your purchase.

4.  Open the document in Microsoft Word and complete the highlighted fields with your personal information (name, ABN etc). Your document will be ready to go in minutes!

FAQ

Is this template editable?

Yes, the template comes in Word format so you are free to make changes to the document.

However, we do not recommend you make changes outside of the fields we have highlighted in the document. The clauses and wording have been written by a lawyer for a good reason. Deleting clauses or modifying them can affect the legal protections contained in the document.

 

What if the law changes?

If the law changes, we’ll email you with the changes and updates to add to your existing templates. So please ensure you keep us updated if your email address changes.

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