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Interim Management Contract for Australia

Interim Management Contract Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions for engaging an interim manager, either as an individual or through their management company. The document outlines the temporary nature of the engagement, specific responsibilities, reporting structures, remuneration, and performance expectations. It includes provisions for compliance with Australian employment and contractor legislation, while addressing key aspects such as confidentiality, intellectual property rights, and termination conditions. The contract is designed to protect both parties' interests while ensuring clear guidelines for the interim management arrangement.

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What is a Interim Management Contract?

The Interim Management Contract is utilized when organizations require temporary senior leadership for specific periods or projects under Australian jurisdiction. This may be due to sudden departures, organizational restructuring, specific project requirements, or crisis management needs. The contract type is specifically designed to establish clear parameters for temporary management arrangements, including scope of authority, reporting relationships, performance metrics, and commercial terms. It addresses both the immediate operational needs and risk management aspects of engaging senior interim talent, while ensuring compliance with Australian employment law, corporations law, and relevant industry regulations. The document is particularly valuable for businesses undergoing transition, requiring specialist expertise, or managing temporary leadership gaps, providing a robust framework for engaging interim executives or senior managers.

What sections should be included in a Interim Management Contract?

1. Parties: Identification of the contracting parties - the company and the interim manager (either as an individual or through their management company)

2. Background: Context of the appointment, including the reason for requiring interim management services

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Formal appointment clause, commencement date, duration, and any extension provisions

5. Role and Responsibilities: Detailed description of the interim manager's position, duties, and scope of authority

6. Performance Standards: Expected standards of performance, KPIs, and reporting requirements

7. Time Commitment: Agreed working hours, availability, and any provisions for additional time

8. Remuneration and Benefits: Fee structure, payment terms, expenses, and any additional benefits

9. Relationship of Parties: Clarification of the business relationship (independent contractor vs. employee)

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and rights to intellectual property created during the engagement

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. Post-Termination Obligations: Ongoing obligations after contract end, including handover requirements

14. General Provisions: Standard legal clauses including governing law, dispute resolution, and entire agreement

What sections are optional to include in a Interim Management Contract?

1. Equity Participation: Terms of any share options or equity participation offered as part of the engagement

2. International Assignment: Additional provisions for interim managers working across multiple jurisdictions

3. Performance Bonus: Structure and conditions of any performance-based incentives

4. Board Position: Additional terms if the interim manager will hold a board position

5. Restrictive Covenants: Non-compete and non-solicitation provisions if required by the business context

6. Insurance Requirements: Specific insurance obligations for the interim manager

7. Succession Planning: Provisions for identifying and training permanent replacement

8. Crisis Management: Special provisions for managing during crisis or turnaround situations

What schedules should be included in a Interim Management Contract?

1. Schedule 1 - Services Description: Detailed scope of services and deliverables

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, payment terms, and expense policies

3. Schedule 3 - Key Performance Indicators: Specific metrics and targets for performance evaluation

4. Schedule 4 - Company Policies: List of applicable company policies and procedures

5. Schedule 5 - Reporting Requirements: Format and frequency of required reports and updates

6. Appendix A - Powers of Authority: Detailed matrix of delegated authorities and approval limits

7. Appendix B - Handover Plan Template: Structure for final handover documentation and process

8. Appendix C - Expense Policy: Detailed guidelines for claiming expenses and reimbursements

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

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use

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