Employment agreement with sole participant, fact or fiction? Details on our website
Dec, 20 2017
If CEO of company is the sole participant, there is no necessity to execute an employment agreement . Sole participant assigns functions of chief executive officer (Director General, President, etc.) to himself without any employment agreement.
Despite the absence of necessity for such arrangements, public authorities and banks frequently ask for it. In this respect signing of employment agreement shall not form a violation. However, it will be better to keep in mind some peculiarities for this type of agreement’s formation:
- no term has to be stipulated in employment agreement with CEO – the sole participant;
- the agreement has to be signed by the same person on the part of employer and on the part of employee;
- this type of agreements should contain all essential conditions as required by employment law.