Executive Employment Contract Template for Austria

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Executive Employment Contract

"I need an Executive Employment Contract under Austrian law for hiring a new Chief Technology Officer for our software company, starting March 1, 2025, including provisions for stock options and international travel, with specific focus on IP protection and non-compete clauses."

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What is a Executive Employment Contract?

The Executive Employment Contract is a crucial legal document used when appointing senior-level employees in organizations operating under Austrian jurisdiction. This agreement is specifically designed to address the unique aspects of executive employment relationships, incorporating provisions that reflect the enhanced responsibilities and privileges of executive positions while ensuring compliance with Austrian labor law. The document is typically used for C-suite executives, managing directors, and other senior leaders who have significant decision-making authority and responsibility within the organization. It includes comprehensive terms covering remuneration, benefits, duties, confidentiality, and post-employment obligations, while taking into account specific Austrian legal requirements regarding executive employees, such as working time exemptions and special termination provisions. The contract also addresses corporate governance requirements and often includes provisions for equity participation or long-term incentive plans.

What sections should be included in a Executive Employment Contract?

1. Parties: Identification of the employer company and the executive employee

2. Background: Context of the appointment and any relevant corporate structure information

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, duties, and duration of appointment (fixed-term or indefinite)

5. Duties and Responsibilities: Detailed description of executive role, reporting lines, and scope of authority

6. Place of Work: Primary workplace location and travel requirements

7. Working Time: Working hours arrangements, acknowledging executive exemption from standard working time restrictions

8. Remuneration: Base salary, payment intervals, and review process

9. Variable Compensation: Bonus schemes, performance criteria, and payment terms

10. Benefits: Standard benefits package including insurance, pension, and other perks

11. Vacation and Leave: Annual leave entitlement and other leave rights

12. Illness and Incapacity: Sick leave terms and long-term incapacity provisions

13. Confidentiality: Protection of company confidential information

14. Intellectual Property: Assignment of IP rights created during employment

15. Data Protection: Compliance with GDPR and Austrian data protection laws

16. Termination: Notice periods, grounds for termination, and immediate termination provisions

17. Post-Termination Obligations: Return of company property and ongoing confidentiality obligations

18. Governing Law and Jurisdiction: Austrian law as governing law and jurisdiction for disputes

What sections are optional to include in a Executive Employment Contract?

1. Non-Competition: Post-employment competition restrictions, used when protecting business interests is crucial

2. Non-Solicitation: Restrictions on soliciting employees or customers, used to protect company relationships

3. Garden Leave: Right to place executive on paid leave during notice period, used for sensitive positions

4. International Travel: Specific provisions for international assignments or frequent travel, used for global roles

5. Company Car: Terms of company car provision, used when offering vehicle as benefit

6. Stock Options/Share Schemes: Participation in equity-based compensation programs, used for long-term incentivization

7. Secondary Employment: Restrictions on additional employment or board positions, used for full-time executives

8. Relocation: Relocation assistance and terms, used when executive needs to relocate

9. Change of Control: Special provisions in case of company ownership change, used for senior executives

10. Legal Fees: Coverage of legal fees for contract review, used to ensure independent advice

What schedules should be included in a Executive Employment Contract?

1. Schedule 1 - Job Description: Detailed outline of position responsibilities and requirements

2. Schedule 2 - Bonus Scheme: Detailed terms of variable compensation and performance metrics

3. Schedule 3 - Benefits Package: Comprehensive list of benefits and their terms

4. Schedule 4 - Company Policies: Key company policies applicable to the executive

5. Schedule 5 - Stock Option Terms: Detailed terms of any equity participation

6. Appendix A - Confidential Information: Specific definition of confidential information

7. Appendix B - Approved Outside Activities: List of pre-approved board positions or other activities

8. Appendix C - Travel Policy: Specific travel and expense policies applicable to the executive

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Retail

Professional Services

Energy

Telecommunications

Real Estate

Construction

Transportation

Hospitality

Media and Entertainment

Pharmaceuticals

Consumer Goods

Industrial Services

Relevant Teams

Human Resources

Legal

Executive Management

Board of Directors

Corporate Governance

Compensation and Benefits

Talent Acquisition

Corporate Secretary

Compliance

Finance

Relevant Roles

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operating Officer (COO)

Chief Technology Officer (CTO)

Managing Director

Executive Director

General Manager

Country Manager

Regional Director

Vice President

Senior Vice President

Division Head

Department Head

Executive Vice President

Chief Marketing Officer (CMO)

Chief Human Resources Officer (CHRO)

Industries
Austrian Labour Constitution Act (Arbeitsverfassungsgesetz - ArbVG): Fundamental law governing collective labor relations and works council rights, with specific provisions for executive employees who may be exempt from certain works council provisions
Austrian Salaried Employees Act (Angestelltengesetz): Regulates the employment relationship of white-collar workers, including executives, covering areas such as notice periods, termination, and sick leave
Working Time Act (Arbeitszeitgesetz - AZG): Governs working hours and rest periods, with special provisions for executive employees who may be exempt from standard working time restrictions
Austrian General Civil Code (ABGB): Contains basic provisions on employment contracts and general contract law principles applicable to employment relationships
Act on Adaptation of Employment Contracts (Arbeitsvertragsrechts-Anpassungsgesetz - AVRAG): Provides regulations on transfer of undertakings, information obligations, and other employment contract requirements
Competition Law (Bundesgesetz gegen den unlauteren Wettbewerb - UWG): Relevant for non-competition clauses and protection of business secrets in executive contracts
Company Pension Act (Betriebspensionsgesetz - BPG): Regulates occupational pension schemes, which are often relevant for executive contracts
Equal Treatment Act (Gleichbehandlungsgesetz - GlBG): Ensures non-discrimination in employment relationships, including executive positions
General Social Insurance Act (Allgemeines Sozialversicherungsgesetz - ASVG): Covers social security obligations and benefits, with specific provisions for high-income executives
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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