Employment

What employment provisions will an investor expect?

Investors will typically expect to review and update employment agreements for key personell, including founders, to ensure clauses cover the following key areas:

• employment role and responsibilities
• employment term and notice periods to terminate employment
• salary and other benefits
• restrictions on other activities whilst employed by the company
• ownership by the company of intellectual property created during the course of employment
• restrictive covenants applicable on termination of employment
• payment in lieu of notice and gardening leave clauses
• circumstances in which the company may serve terminate employment with immediate effect

This sub-section of our investing in a company section includes appropriate forms of employment agreement for senior and junior employees.

Consultancy as an alternative to employment.

As an alternative to being employed by the company, an individual may provide their services to the company on a consultancy basis under a consultancy agreement.  In addition, the investor may also provide consultancy services to the company.  The consultancy agreement may be between the company and the individual or between the company and a personal service company owned by the individual.