When operational management of processes in a company is required, business owners decide to hire a director. The director may be one of the business owners or another person. The owners of the company may decide to transfer the management of the company to a management organization or a manager – an individual entrepreneur. When hiring a director, questions arise: how to formalize a relationship with a hired director, how to control his work, etc. We will tell you about this, as well as how we can help in the case of hiring a director by the owners.
What should owners pay attention to
In a business company, which include joint-stock companies, limited liability companies, the head is elected at a meeting of the participants of the business company. In accordance with the Law of the Republic of Belarus “On Business Companies”, the director is the sole executive body of the business company.
Owners can consider several candidates, compare their business and personal qualities with their requirements for the candidacy of a director and choose a certain person. At the meeting, you can determine the owner or chairman of the general meeting of participants, who will sign an employment contract with the director. The election of the head by the owners is formalized in the form of a decision of the general meeting in the minutes of the general meeting of the participants of the business company. Such a protocol should be drawn up by the date of the general meeting no later than five days after its holding.
In a unitary enterprise, the owner appoints a director. Formalize the appointment of the director by the decision of the owner. When the owner of a unitary enterprise is another company, you need to instruct a lawyer to check the charter of the unitary enterprise. It will contain information about how directors are appointed.
Owners of companies who need to obtain a license to conduct business need to remember that the requirements for the hired head of the company are usually prescribed in the licensing legislation.
Registration of employment relations with the hired director
When the company’s charter requires certain procedures related to hiring a manager before hiring a manager, the company must work. Therefore, a fixed-term employment contract is concluded with the director for the duration of such procedures.
In other cases, a written employment contract is concluded with the hired director, as well as with other employees of the company.
Usually, the director is assigned an irregular working day. This should be written in the employment contract. Belarusian legislation provides for compensation for irregular working hours: additional leave of up to 7 calendar days.
In the employment contract with the hired director, they indicate the payment of labor in the form of a specific amount – this is the tariff salary. Surcharges, additional payments can be specified as a percentage of the tariff salary or in the form of a certain amount. When an organization has a Regulation on remuneration, it is possible to prescribe in the employment contract that other payments, except for the salary, are paid to the director in accordance with this Provision. The regulation on remuneration refers to the local legal acts of the company.
After the conclusion of an employment contract, an order of the employer on hiring the director is issued. According to common practice, the director signs an order to hire himself. On the basis of the order, a record of employment is made in the director’s work book.
Features of remuneration of a hired director in Belarus
In Belarus, the remuneration of directors of companies, including private ones, depends on the financial results of the company. The ratio of the average earnings of the director of the company and the average salary for the company as a whole is no more than 8 (Resolution of the Council of Ministers of the Republic of Belarus No. 597 dated 08.07.2013 “On improving the conditions of remuneration of heads of organizations depending on the results of financial and economic activities”).
The company’s accountant needs to keep this document under control, since it includes the procedure for calculating this coefficient and provides for the specifics of the bonus provided by the contract for the head of the company, depending on various factors. For example, a director cannot be charged and paid a bonus for a month in which the company had arrears in the payment of wages and utilities.
How we can be useful in regulating relations with the hired director
Our lawyers are experienced specialists in the field of corporate relations and labor law and speak English. We can:
- Advise you on hiring a company director.
- Prepare documents on hiring a director of the company.
- Advise you on the terms of the employment contract with the director of the company.
- Draw up an employment contract with the director of the company.
- Advise you on issues arising in the process of interaction with the hired director of the company.
Contact us
If you have any questions about the regulation of relations with a hired director in Belarus, we will be glad to help you! Our long-term experience in the field of corporate relations will help you in resolving any situations and disputes.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
