Directors’ Service Agreements are referred to as “Directors’ Service Contracts” in the Companies Act 2006 but the difference is in name only. This Director’s Service Contract – Fixed Salary contains the basic terms and conditions which may be used by a company in retaining a director. Officially, a director is an officer of the company and not an employee. As such, he or she has no right of remuneration unless the company's articles state otherwise. In theory, therefore, he or she will not need an employment contract or agreement. However, the director may also be employed in another capacity - e.g. as a finance or managing director. In that instance, he or she will be considered an executive director and will require an employment contract.