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CONTRACTS OF EMPLOYMENT: Terms for senior employees merit serious consideration

06 March 2015  

Sharon Tan and Richard Cook look at the importance of clear documentation for start-up companies following a Court of Appeal decision

In the fast paced world of start-up companies, formal documentation recording the founders’ agreed working practices is often ascribed little importance. There are much more pressing matters to consider, such as securing investment, building a client base and generating the company’s early revenues. Each of the founders usually has a material interest in the business and the risk of one of them asserting employment rights (as opposed to rights stemming from the more keenly negotiated shareholders’ agreement or articles of association) is usually presumed to be relatively low, or given no thought at all.

Additional Info

  • Case(s) Referenced:

    Stack v Ajar-Tec Ltd [2015] EWCA Civ 46

    Tilson v Alstom Transport [2010] EWCA Civ 1308

Last modified on 13 March 2015