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As a company director, you may be well aware of the employment rights of your employees. But are you aware of your own employment rights as a director? Directors have different employment rights, depending on what type of role you have and your employment status.
If you have any questions or concerns about your personal employment rights while working as a director, please contact us. As employment law specialists, we can work with you to ensure that you are well aware of your employment rights as a director.
You will know that there are different types of directors. It's important to be clear on what type of director role you hold, as each type has different employment rights.
As you can see from the distinction, your employment rights as a director will depend on whether you are an employee, a worker, or are categorised as self-employed.
The organisation will typically employ executive directors. Therefore, as an employee or a worker, you will be entitled to many employment rights.
These employment rights include:
If you are a non-executive director, you will not be officially employed by the company. You will offer your services on an advisory or part-time basis. You will likely be self-employed and paid a fee rather than a wage.
Most non-executive directors will not have employment contracts. Instead, you may have a service contract. This will be more complex than a traditional employment contract. It may outline details such as remuneration packages.
If a NED is given specific duties, you could become eligible for protection of worker or employment rights, such as unfair dismissal rights and protection against discrimination.
At Birkett Long, we can work with businesses throughout Essex to advise on service contracts and employment rights for non-executive directors. We can help you understand the differences between the two director roles and provide appointment documentation for non-executive directors that clearly outline any entitlement to employment rights.
Even if the director is not an employee or a worker, they could be protected against discrimination due to their status as an office holder.
An office holder is appointed to a specific position in a company but does not have a contract or receive regular payments.
Examples of office holders include:
Office holders and applicants for an office are protected against discrimination, victimisation, and harassment. This will be by a person with power to recommend, make or terminate their office or to determine their conditions.
Your employment status will impact what employment rights you are entitled to. There are many complexities surrounding company directors, particularly relating to your status as an employee, a worker, or a self-employed advisor.
We advise that if you have any questions regarding your employment status as a director, you should speak to a member of our employment law team. We can work with you to confirm your employment rights, whether you are working as an executive or non-executive director. Our expert team can also work with you to prepare employment or service contracts.
As the section above was relating only to employed directors, I felt that this section was needed to bring balance to the article. I have googled the information, but you may wish to withdraw it.