Drafting Practitioner

The Drafter regularly provides useful tips and advice with regard to document drafting. Here, in Drafting Practitioner, you have the opportunity to practice your drafting skills. Model answers are provided.

EMPLOYMENT AGREEMENT

Issues to be considered

XX is to be employed for an unlimited period of time as managing director of Acme Co., a small publishing company which is a subsidiary in your country of a British company. Matters to be considered include:

- the term (period) of employment
- salary and other benefits, and reimbursement of expenses
- the employee’s duties, and the performance of them
- holidays
- illness or incapacity of the employee – both short-term and long-term
- termination of the agreement by the company and the employee
- employee’s covenant (promise) not to compete with the company following termination of the employment.

When drafting your contract, do so in accordance with the practice (e.g. salary and benefits) and applicable law in your country. This may, of course, result in a quite different document from our model!

Draft sections dealing with the following:

1. Introduction (parties, addresses)
2. Employee’s position and duties (possible work for other companies in the Group)
3. Term (period) of employment (retirement age?)

Suggested Model Answer

Acme Co. (hereinafter referred to as the “Company”), company no. 123456, the registered office of which is situated at …………, city, country, and XX, personal identification no./ address…………………….., have this day entered into the following

EMPLOYMENT AGREEMENT

Section 1

XX shall be employed by the Company as Managing Director, in which capacity he shall be responsible for the day-to-day management of the Company in accordance with the laws of (country) and pursuant to instructions and guidelines issued by the Board of Directors. As a consequence of his employment XX may be required, at the election of the Company, to perform duties on behalf of other companies within the Group. No compensation shall be payable for such services other than reimbursement of additional expenses incurred as a result thereof.

Section 2

XX’s employment will commence on (date) and will continue for an indefinite term subject to the termination provisions set forth in section x below. XX’s employment shall, however, terminate upon XX reaching the age of 65, without any requirement for notice of termination by the Company.