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Director Employment Contract for United Arab Emirates

Director Employment Contract Template for United Arab Emirates

A comprehensive employment agreement governed by UAE law that establishes the terms and conditions of a director's appointment to a company's board or executive position. This document complies with UAE Federal Law No. 33 of 2021 (UAE Labor Law) and Federal Law No. 32 of 2021 (Commercial Companies Law), incorporating specific provisions for director duties, responsibilities, remuneration, and corporate governance requirements. It addresses both employment aspects and corporate obligations, including confidentiality, conflicts of interest, and post-termination restrictions.

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Director Employment Contract

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What is a Director Employment Contract?

The Director Employment Contract is a crucial document used when appointing executive or non-executive directors to UAE-based companies. It serves as a comprehensive agreement that combines standard employment terms required under UAE Labor Law with specific director obligations under UAE Commercial Companies Law. This document is essential for companies operating in mainland UAE or free zones, establishing clear parameters around the director's role, responsibilities, remuneration, and corporate governance obligations. It includes specific provisions for confidentiality, intellectual property, and post-termination restrictions, while ensuring compliance with local regulatory requirements. The contract becomes particularly important in context of corporate governance requirements for UAE companies, especially those that are publicly listed or regulated.

What sections should be included in a Director Employment Contract?

1. Parties: Identification of the company and the director, including their full legal names and addresses

2. Background: Context of the appointment, including company information and the basis for engaging the director

3. Definitions: Key terms used throughout the agreement, including specific corporate and legal terminology

4. Appointment and Term: Details of the director's role, position, and duration of appointment

5. Duties and Responsibilities: Comprehensive outline of the director's duties, including statutory obligations and specific responsibilities

6. Time Commitment: Expected working hours, availability, and commitment to board meetings

7. Remuneration and Benefits: Salary, bonuses, allowances, and other benefits as per UAE labor law requirements

8. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per UAE labor law

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Conflicts of Interest: Provisions for declaring and managing conflicts of interest

11. Intellectual Property: Ownership and rights related to intellectual property created during directorship

12. Termination: Grounds and procedures for termination, notice periods, and consequences

13. Post-Termination Obligations: Non-compete, non-solicitation, and other post-termination restrictions

14. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution procedures

What sections are optional to include in a Director Employment Contract?

1. Share Options and Equity Participation: Required for directors receiving share options or equity-based compensation

2. International Travel: Necessary for roles requiring significant international travel, including allowances and insurance

3. Multiple Directorships: Required for group company arrangements where director serves on multiple boards

4. Free Zone Specific Provisions: Needed when the company operates within DIFC, ADGM, or other free zones

5. Corporate Governance Compliance: Additional requirements for listed companies or regulated entities

6. Performance Metrics: Specific KPIs and performance evaluation criteria

7. Insurance and Indemnification: Detailed provisions for director's liability insurance and indemnification

8. Subsidiary Board Positions: Required when director serves on boards of subsidiary companies

What schedules should be included in a Director Employment Contract?

1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, allowances, and benefits

2. Schedule 2 - Position Description: Detailed role specification and responsibilities

3. Schedule 3 - Company Policies: List of applicable company policies and procedures

4. Schedule 4 - Performance Criteria: Specific metrics and targets for performance evaluation

5. Schedule 5 - Share Option Terms: Details of any share option or equity participation scheme

6. Appendix A - Board Resolution: Copy of board resolution approving the appointment

7. Appendix B - Statutory Declarations: Required declarations under UAE Companies Law

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
















































Clauses











































Relevant Industries

Financial Services

Technology

Manufacturing

Real Estate

Healthcare

Retail

Energy

Transportation

Professional Services

Construction

Telecommunications

Education

Hospitality

Media and Entertainment

Mining and Resources

Relevant Teams

Legal

Human Resources

Corporate Governance

Board Secretariat

Compliance

Finance

Executive Office

Risk Management

Relevant Roles

Executive Director

Non-Executive Director

Managing Director

Independent Director

Board Chairman

Vice Chairman

Regional Director

Finance Director

Technical Director

Operations Director

Commercial Director

Group Director

Resident Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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