Why should I make a director contract?
If the director is the owner of the company, it is according to the Companies Act, one legal requirements that a director’s contract is made, as it is a requirement that all agreements between the company and the owner be made in writing.
If the director is not the owner of the company, it is not, as a rule, a requirement, that an employment contract is drawn up between the company and the director – however, this is clearly an advantage in the vast majority of scenarios. A director’s contract ensures a safe and firm framework for both the company and the director, especially in cases where there are several owners of the company. A director’s contract avoids misunderstandings about terms of employment, such as pay and vacation. In companies where there is only one owner, a director’s contract is also an advantage, especially if the owner in the long run wants to deduct wages from the company.
Directors are not covered by the Employee Act, and thus they are not covered by the Holiday Act, minimum rules for notice of termination, holidays, maternity and termination in case of illness or the like. In addition, directors are also not covered by collective agreements. Therefore, there is a high degree of freedom of contract in the employment relationship, as it is primarily regulated by the director’s contract.
This also means that a director’s contract is often considerably longer and regulates more than a “ normal ” employment contract, as it should regulate the conditions that would normally be given by the Employees Act.
What does the director contract contain?
The Legal Desk director’s contract contains all the most important matters for the director’s employment in a company and can be adjusted and adjusted as desired. The contract includes:
The rights and duties of the Director:
Including date of entry, area of responsibility, duties during employment, confidentiality and any intellectual property rights, customer and competition clauses.
Director’s financial rights:
Including wages, perks, pensions and holidays.
Termination:
The Director’s resignation, dismissal and any severance pay.
Dispute settlement:
How disagreement over interpretation of the agreement should be decided if it arises.
This Agreement should only be applied if there is a “ real director ”. That is, a person who only reports to the company’s board of directors or owns ( e ), or even owns at least 5% of the company, and who is registered as director of the Danish Business Authority. If, instead, this is a person who has a director’s title, but who, for example, must have terms as a salaried employee and is covered by the salaried employee law, this contract should not be used. Here it can be used our employment contract.
How do I make the director contract valid?
Once you have completed the form and completed the payment, you will immediately receive the director’s contract, which is ready to be signed by the director and the company ( the eligible ). Both parties can easily and securely sign the contract digitally with their NemID/MitID, so there is no need to print or scan. Once the director’s contract is signed, it is valid and can then be stored online in each party’s private or at our e-storage system.
Make your director contract with DKkonsult
You will receive the director contract immediately – ready for signature with NemID or MitID. You can also print the contract and sign it physically.
Just click ‘ Order director contract ’ below to get started on the form. It typically takes 10-15 minutes to get it done.
