The design of contracts for general managers

The basics and what’s beneficial for you

Whether general manager or executive employee: This employment has some special features. You are close to the employer and have corresponding authority. However, you only enjoy limited protection by labor legislation. As executive employee you are excluded from collective protection measures, as general manager you are only protected by the most rudimentary regulations.

Clarify your status as general manager

For general managers it must be determined whether she is a company representative or a so called “third party general manager”. If she is a company representative then she wields the highest managerial authority. Then she is not considered an employee and will not receive any significant protection from labor legislation. As a third party general manager the status as employee may still apply. The exact details have to be determined for each individual case. Here a review by a specialist labor law lawyer may be worthwhile. Our specialized labor law firm will gladly help you in this regard.

Why you should negotiate persistently

In general, the provisions for general managers follow the principle of private autonomy. This only allows for legal protection in exceptional cases. You should make precise agreements- for instance concerning claims of continued wages during holiday periods and leaves of sickness. Also clarify if there is any vacation entitlement. Our experience is that while employers dictate terms, candidates often fall short of their potential. Negotiate persistently. In order to discuss reasonable demands for you, do not hesitate to arrange a consultation appointment. For example, a stake in the company, insurance benefits or retirement plans could be reasonable for you.

What you should keep in mind when negotiating

The termination of employment should also be clarified. During contract design there is often disagreement when it comes to this. Dismissal protection and compensation claims play an important role. In the general manager contract specific regulations can be stipulated. Clarify your previous employment. Arrange whether or not you can return, when the position as general manager is terminated. We will also gladly review potential restraint on competition obligations. These can affect your career development, in part impermissibly.

Take advantage of the general manager contract

Again: A general manager contract means that you are exempt from the usual labor law protection. But there are also advantages. General manager contracts offer one thing: creative freedom. Use this freedom and bring your legal and economic interests to bear. We analyze your legal position and reveal your interests. We will also gladly negotiate ambitiously with your employer. In order to avoid all pitfalls and achieve the best possible result, a consultation with a specialized labor law attorney is the ideal solution.

As general manager or executive employee you have many responsibilities. But also rights. You should be aware of these in order to not be disadvantaged. Consult your legal counsel during contract negotiations.

What pitfalls lurk in general manager contracts? For which regulations do you have a claim? 

Do not hesitate to get in touch with us, we offer accurate and comprehensive advice.
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