Often it is necessary to observe a situation where a contract or an ordinary employment contract with a director is no different from a contract concluded with ordinary employees. This approach is not entirely correct.
Despite the fact that, on the one hand, the director is also an employee of the enterprise and the provisions of labor legislation fully apply to him, however, in addition to this, the head is also the executive body responsible for the organization's activities.
It should also be remembered that the duties and rights of the director are determined both by the constituent documents and the labor contract, which is, along with legal regulations, a source of regulation of relations with employees in the enterprise. If you underestimate the importance of this document, then the employer may have labor disputes in cases where they could be easily avoided.
Employment contract with director: prerequisites
Any labor contract, including one concluded with the head, must necessarily contain the conditions without which this document can be considered non-concluded or executed in violation of the labor law. Unfortunately, in some cases, employers ignore some of the requirements of the law.
Thus, the employment contract with the director must contain all the information about the manager and the employer. When concluding a contract with a manager, you must indicate the decision that served as the basis for the execution of the contract. The decision must specifically indicate the authority of the person to sign the employer employment contract with the manager.
The contract also indicates the name of the enterprise, describes the labor functions. It should be remembered, and you can mention, concluding an employment contract with the director, that he cannot work part-time, except for the implementation of creative, scientific or teaching activities.
A sample employment contract with the director should contain clauses relating to the fundamental rights and obligations of the employer and employee. These conditions are often underestimated by the employer, which leads to serious litigation in case of conflict and becomes a decisive factor in resolving disputes.
If you look closely, it often turns out that the employer does not have sufficiently clear indications of the rights and obligations of the director in the constituent documents, except for a banal reference to the contract. To avoid unpleasant conflicts, the employer has the opportunity to determine a clear relationship with the leader. It is necessary either to spell out in detail all the duties and rights of the director in the text of the employment contract itself, or in the prescribed manner to approve the job description for the director of the organization. In this case, the contract makes reference to the relevant documents. For example, "an employee undertakes to conscientiously fulfill all the duties that are determined by the charter of the enterprise and job description."
An employment contract with a (commercial) director must also contain the duration of the relationship, in this case the document is called a contract. In the absence of this clause, it is considered that the employment contract is concluded indefinitely.
The labor agreement must specify the mode of work and rest of the head. Despite the fact that the director’s working day is irregular, it should be established for him the beginning and end of working time, as well as breaks, weekends and holidays.
In addition, the contract with the manager must contain the terms of payment for his work: days and procedure for payments, method of calculating salaries, salary, allowances, surcharges, incentive payments.