Often, employees are required in the LLC, and often business owners decide to attract a hired specialist to the position of CEO. Therefore, each employee then draws up an employment contract with this official. It is important to understand how to properly draw up an employment contract with the director of the LLC, what information is necessarily included in this document, and also what nuances should be taken into account.
Basic concepts
The head is represented by an employee of the LLC, which is vested with the founders with different rights and obligations. An employment contract is surely drawn up with him. The specialist is endowed with numerous unique powers and capabilities, so he can make important decisions regarding the functioning of the company.
The main responsibilities and rights of the director include:
- signing of various important documents in the company;
- making serious decisions regarding the activities of the enterprise, and often it is not required to obtain permission to make these decisions from the founders;
- the general director is the representative of the organization;
- The specialist is responsible for all important areas of the enterprise.
It is allowed that one of the founders be appointed as the director, and in this case it is required to correctly execute his decision, on the basis of which a specialist is appointed to the position.
Often, if there are two founders, it is required to draw up an employment contract with the director of the LLC. In this case, the participants in the enterprise officially hold a meeting of the founders. At it, a vote is taken and a decision is made regarding the appointment of a specific specialist. Under such conditions, the director’s employer is the direct organization, not its founders.
Each person who wants to get a job in the company insists on signing an employment contract with the director of the LLC. This is due to the fact that, in the presence of formalized relations, a specialist is provided with a guarantee for pension insurance, medical care and official salaries.
The nuances of applying for a director’s job
An employment contract may be drawn up by the founder of the LLC with the general director of the company. Under such conditions, the company’s participants relieve themselves of material responsibility for the activities of the enterprise, so it passes to the employee. Founders will be able to be solely subsidized if there is evidence that they intentionally led the company to bankruptcy or engaged in illegal activities.
The features of the preparation of an employment contract with the director of the LLC include the following:
- if the company has two founders, then both must agree to sign such an agreement with a selected specialist appointed by the general or commercial director;
- often, it is the participants of the enterprise that are engaged in applying for the work of deputies;
- the company acts as an employer in the preparation of the employment contract;
- a trial period may be appointed, and its duration may reach even six months;
- in the TC there are no requirements for the duration of such an agreement;
- if a fixed-term contract is being formed, its validity period is negotiated with a hired specialist, after which the moment is prescribed in the constituent documentation of the company.
Since the specialist is endowed with numerous powers, it is important to correctly draw up a document so that it lists all the rights and obligations of the future director. The term of the employment contract with the director of the LLC may be absent, therefore it is allowed to draw up an unlimited contract. If an urgent agreement is formed and no action is taken by the parties at the end of this time period, an automatic extension takes place. In this case, the document becomes perpetual.
It is allowed that the director combined several positions in the company at once, but this moment needs to be agreed with the founders.
Concept of agreement
An employment contract with the director of the LLC is compulsory, as it acts as an official document regulating the relations arising between the founders and the hired specialist. Based on this document, the employee agrees to the implementation of specific labor duties, and must also obey the internal routine.
The nuances of compiling a document:
- when drawing up an employment contract, the sole founder of the LLC with the director guarantees that the hired specialist will receive a salary, rely on different social guarantees and safe working conditions;
- documentation is generated in duplicate, since each side must have this document;
- a contract may be drawn up with one founder or a group of persons, depending on the composition of the founders;
- The director is transferred all the obligations on the basis of which business is conducted in the company.
The contract certainly establishes different rights and obligations transferred to the hired specialist. A sample of the founder’s employment contract with the director of the LLC can be studied below.
What responsibilities does the director have?
In addition to the employment contract, the hired director of the company must have a job description. This documentation is presented by an official document, on the basis of which the duties and powers of the head of the company are established.
The position of director should be provided for in the charter documentation of the enterprise. Based on the employment contract between the director of the LLC and the founder, a specialist can perform several functions at once in the company.
Job descriptions can vary significantly in different enterprises, as the scope of the company and the nuances of its activities are taken into account. Therefore, the following nuances are taken as a basis:
- if the company specializes in construction, the director is engaged in negotiating, finding clients, concluding various contracts and providing the company with material and technical elements, and the director must monitor compliance with safety regulations and discipline at the construction site;
- if the company is engaged in trading activities, the director must have an economic education and have the necessary skills for this work, as well as he must comply with laws in the field of consumer protection and take into account the requirements for storage of various goods;
- if a catering establishment is opened, the director is responsible for using only high-quality and safe products, as well as for compliance with numerous sanitary standards.
Additionally, on the basis of the employment contract of the commercial director of the LLC or the general manager, specialists have common responsibilities that the director of any organization has. These include:
- management of various areas of the company;
- organization of interaction between employees of different departments and branches of the company;
- carrying out work related to increasing the efficiency of the enterprise;
- increasing the competitiveness of the company;
- Fulfillment of obligations of the company to various state bodies, funds, counterparties or private individuals;
- the use of various measures aimed at organizing personnel with the necessary qualifications for work in the company;
- control over the correct calculation and the timely transfer of salaries to all hired specialists;
- protection of the interests of the enterprise;
- discipline control in the company.
All of the above obligations will certainly be fixed in the labor agreement. Therefore, before signing an employment contract with the director - the sole founder of the LLC, it is required to carefully study this document for both citizens.
Job descriptions are certainly approved by the founders of the company, for which a general meeting is held.
What information is included in the agreement?
It is advisable to study the sample employment contract with the general director of the LLC in advance in order to know what data is entered into it. This document is official, therefore it should include only legal information. Without fail, when compiling it, the following data is entered:
- the name of the organization where the hired specialist, represented by the general director, will be employed;
- TIN of the enterprise and future director;
- personal information about the employee presented by data from the passport, name, date and place of birth, place of residence and contact information;
- information about the responsible person on behalf of whom the signing of the agreement is registered;
- the date of the contract is set;
- lists all the job responsibilities assigned to the hired director;
- the exact address of the specialist’s place of work is prescribed;
- The validity period of the document is indicated.
The document must be signed by both participants in the process. Often the director is the sole founder, and in this case, the contract may have two of its signatures, which does not violate the law.
Director recruitment procedure
If you want to hire a future head of the company, some preliminary steps must be taken to hire a director. A participant in an LLC makes an employment contract with a hired specialist subject to the following conditions:
- Initially, the head of the company is elected by the general meeting;
- if there is only one owner of the company, then he makes the appropriate official decision;
- after approval of the candidacy, an order is issued by the founders;
- an employment agreement is drawn up with the employee;
- To sign the contract, it is required to obtain from the future hired director various documents submitted by his passport, TIN and SNILS.
It is important to correctly draw up a document to indicate in it all the duties and rights of the hired specialist. For this, it is advisable to use a sample employment contract. The commercial director of an LLC can also be selected by direct founders or by an already appointed general manager.
What is the subject of the contract?
In the contract a lot of attention should be paid to its subject. Therefore, the nuances are taken into account:
- it is indicated in the document that a citizen is appointed to the position of general director of the company;
- the subject states that the head is obliged to engage in general management of the enterprise;
- the position should be the same as in the decision on the appointment of the director;
- indicate whether the activities under this labor contract are core to the specialist;
- the place of work of the citizen is prescribed, since he can work not only in the central office, but even in the division of the company.
Additionally, the agreement indicates the duration of the agreement. All functions and duties of the director are listed. Often, an employment contract is immediately drawn up with the deputy director of the LLC. The deputy can be selected by the already appointed leader, but often a contract is signed with him on behalf of the founders.
Wage conditions
The head of the company usually receives not only a salary, but also various bonuses or other monetary incentives. This allows you to stimulate a specialist in the continuous development of the organization. Usually additional remuneration is paid for the positive results of the company.
In the contract, it is advisable to indicate precisely under what financial results the manager will be able to count on additional payments. It is not allowed to apply any material fines and sanctions to the specialist, as this is a violation of the requirements of the Labor Code. As a punishment, only disciplinary sanctions can be used, which include the dismissal of a specialist.
Who is involved in signing the document?
If you hire a specialist who will manage the company, then the correctness of the preparation and signing of the labor agreement should be approached with all responsibility.
Who signs the employment contract with the director of the LLC? The procedure can be performed by the direct founders or the person responsible. In the second case, the selected person must have a notarized power of attorney, allowing him to represent the interests of business owners.
Reasons for termination of the contract
Termination of the employment contract with the director of the LLC may be carried out for various reasons:
- the specialist decides on his own, and the founders should be notified about it a month before leaving the company;
- drawing up an agreement between the parties, on the basis of which the former director of the company usually receives severance pay;
- termination of relations due to the expiration of the agreement;
- on the initiative of business owners, and for this there must be evidence that the head of the company did not fulfill his duties, made erroneous decisions or caused damage to the company by other actions;
- in connection with a change in the owner of the company;
- dismissal after initiation of bankruptcy proceedings;
- company closure.
If a specialist wants to quit on his own, then he must remember the need for working out within one month. Therefore, it is required to warn participants about their decision 30 days before immediate dismissal.
The nuances of drawing up a contract with other specialists
In addition to the director, the founders can hire other specialists. Drawing up contracts with them differs in some features:
- when hiring a deputy director, a fixed-term contract is often formed, and the specialist must ensure the director’s labor activity, plan his working day, work with the media and prepare meetings;
- the commercial director must engage in sales and procurement work, as well as exercise control over the economic sphere of the enterprise, and he is usually employed with a trial period for a certain period of time;
- it is allowed to arrange for the director on a part-time basis, but this fact should be indicated in the agreement.
If the founders do not have skills and knowledge in the field of employment of employees, then they can take the help of special consulting firms.
Conclusion
The director of the LLC may act as a hired specialist, therefore he is not the owner of the business. For this, an employment contract must be drawn up between him and the founder.
Business owners should know how to properly form this contract, what information is included in it, and what rights and obligations are vested in the head of the company.