Management contract

Management contract – key information

A management contract is a civil law agreement concluded with a person managing an enterprise or a separate part of it.

The provisions of the Civil Code concerning contracts of mandate, i.e. Articles 734–751, apply to this type of contract. This means that the manager acts independently, in the name and on behalf of the commissioning entity, while the scope of tasks and responsibilities is defined in detail in the agreement.

In practice, a management contract combines elements of a managerial function with settlement rules typical of civil law contracts or B2B cooperation.

Key features of a management contract

• no standard protection under the Labour Code, meaning no statutory holiday entitlement, notice periods or severance pay as in employment
• remuneration negotiated individually, often linked to company performance or the achievement of objectives, e.g. premiums, bonuses or options
• possibility of concluding the contract both as part of business activity in a B2B model and as an individual under a civil law contract
• broad scope of the manager’s responsibility for the entrusted part of the business, often including liability clauses
• possibility of introducing a non-compete clause and confidentiality obligations, also after the cooperation ends