The Director Employment Agreement is a crucial document used when appointing executive directors to UAE companies, whether in mainland UAE or in free zones such as DIFC or ADGM. This agreement is essential for establishing clear terms of employment while ensuring compliance with both UAE labor laws and corporate governance requirements. It addresses the unique position of directors who serve both as employees and board members, including their duties, responsibilities, compensation, benefits, and post-employment obligations. The agreement must comply with UAE Federal Law No. 33 of 2021 (Labor Law) and Federal Law No. 32 of 2021 (Commercial Companies Law), while also considering specific industry regulations and corporate governance requirements. It's particularly important for establishing clear lines of authority, protecting company interests, and ensuring transparent compensation arrangements.
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Key Requirements PROMPT example:
Director Employment Agreement
"I need a Director Employment Agreement for appointing a new Managing Director to our Dubai-based technology company, with special focus on IP protection and share options, starting March 1, 2025."
1. Parties: Identification of the company and the director, including full legal names and addresses
2. Background: Context of the appointment, including company details and the basis for appointing the director
3. Definitions: Key terms used throughout the agreement, including 'Board', 'Confidential Information', 'Services', etc.
4. Appointment and Term: Details of the director's appointment, position, and duration of the agreement
5. Duties and Responsibilities: Comprehensive outline of both executive and board duties, reporting relationships, and performance expectations
6. Time Commitment: Expected working hours, availability, and provisions for other directorships/activities
7. Location and Travel: Primary work location and travel requirements
8. Remuneration and Benefits: Detailed compensation structure, including salary, board fees, bonuses, and benefits
9. Expenses: Policy on reimbursement of business expenses
10. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per UAE law
11. Confidentiality: Obligations regarding company confidential information and trade secrets
12. Intellectual Property: Ownership and protection of IP created during the directorship
13. Non-Competition and Non-Solicitation: Post-employment restrictions and their geographical/temporal scope
14. Termination: Grounds and procedures for termination, notice periods, and consequences
15. Garden Leave: Company's right to place director on garden leave during notice period
16. Company Policies: Compliance with company policies, procedures, and code of conduct
17. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes
1. Share Options/Long-Term Incentives: Details of any share option schemes or long-term incentive plans, used when the company offers equity-based compensation
2. International Travel/Secondment: Specific provisions for international assignments or regular travel, needed for groups with international operations
3. Corporate Governance Requirements: Additional provisions for listed companies or regulated entities, required for public companies
4. Free Zone Specific Provisions: Additional clauses required by DIFC or ADGM regulations, needed if company is in a free zone
5. Board Committee Participation: Specific duties related to board committee membership, needed if director will serve on committees
6. Insurance and Indemnification: Details of D&O insurance and company indemnification, recommended for higher-risk industries
7. Relocation Provisions: Terms related to relocation assistance, needed if director is being relocated
8. Change of Control: Provisions dealing with company ownership changes, important for listed or acquisition-target companies
1. Schedule 1 - Duties and Responsibilities: Detailed list of specific executive and board duties
2. Schedule 2 - Remuneration Package: Detailed breakdown of all compensation elements
3. Schedule 3 - Benefits: Comprehensive list of benefits and allowances
4. Schedule 4 - Company Policies: List of key company policies applicable to the director
5. Schedule 5 - Restricted Activities: Detailed list of non-compete and non-solicit restrictions
6. Appendix A - Board Resolution: Copy of board resolution approving the appointment
7. Appendix B - Position Description: Detailed job description and role profile
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Healthcare
Manufacturing
Real Estate
Retail
Energy
Transportation
Professional Services
Construction
Telecommunications
Education
Hospitality
Media and Entertainment
Mining and Resources
Relevant Teams
Legal
Human Resources
Corporate Governance
Company Secretariat
Board of Directors
Executive Committee
Compensation Committee
Nomination Committee
Compliance
Risk Management
Relevant Roles
Executive Director
Managing Director
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Regional Director
Country Manager
Division Director
Executive Vice President
Board Member
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