The Director Employment Contract is a specialized agreement used when appointing executive directors in Maltese companies, combining elements of both employment law and company law. This document is essential when a director will have both board responsibilities and executive duties within the organization. It needs to comply with the Companies Act (Chapter 386 of the Laws of Malta) and the Employment and Industrial Relations Act, while also addressing corporate governance requirements, regulatory compliance, and risk management. The contract typically includes detailed provisions on duties, remuneration, benefits, confidentiality, non-competition, and termination, tailored to the specific needs of director-level appointments in Malta. It's particularly important for establishing clear boundaries between the director's role as an employee and their statutory duties as a board member.
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1. Parties: Identification of the company and the director, including full legal names and addresses
2. Background: Context of the appointment, including any relevant company resolutions
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Details of the director's appointment, position, and duration (fixed-term or indefinite)
5. Duties and Responsibilities: Comprehensive outline of both executive and statutory duties
6. Time Commitment: Working hours, availability, and expectations regarding time dedication
7. Place of Work: Primary work location and travel requirements
8. Remuneration: Base salary, bonuses, and other financial benefits
9. Benefits: Non-financial benefits including healthcare, insurance, and other perks
10. Expenses: Policy on business expenses and reimbursement
11. Leave Entitlement: Annual leave, sick leave, and other types of leave
12. Confidentiality: Protection of company information and trade secrets
13. Intellectual Property: Ownership of work products and innovations
14. Conflicts of Interest: Declaration and handling of potential conflicts
15. Non-Competition: Restrictions during and after employment
16. Termination: Grounds and procedures for ending the agreement
17. Garden Leave: Company's right to place director on garden leave
18. Company Policies: Compliance with company policies and procedures
19. Data Protection: Handling of personal data under GDPR and local laws
20. Governing Law: Confirmation of Maltese law as governing law
21. Entire Agreement: Standard boilerplate confirming this as complete agreement
1. Share Options: Include when offering equity-based compensation
2. International Travel: Include for roles requiring significant international work
3. Multiple Directorships: Include when director serves on multiple group company boards
4. Performance Targets: Include when remuneration is linked to specific KPIs
5. Training and Development: Include when specific professional development is required
6. Relocation Package: Include when director is relocating for the position
7. Acting as Company Secretary: Include if director also serves as company secretary
8. Insurance and Indemnification: Include detailed D&O insurance provisions if not covered elsewhere
1. Schedule 1 - Duties and Responsibilities: Detailed list of specific duties and responsibilities
2. Schedule 2 - Remuneration Package: Detailed breakdown of all compensation elements
3. Schedule 3 - Benefits Package: Detailed description of all benefits and conditions
4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria
5. Schedule 5 - Company Policies: List of applicable company policies
6. Appendix A - Board Resolution: Copy of board resolution appointing the director
7. Appendix B - Job Description: Detailed executive role description
8. Appendix C - Share Option Terms: Details of any share option or equity schemes
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