Why are contracts of employment necessary?

A contract of Employment gives both parties, Employers and employee rights and duties. The purpose is to understand all the aspects of the terms of Employment.

An Employer is legally obliged to provide employees with a written statement of employment. The employer must issue this statement within the first 5 days of commencement. If the full contract is not finalised at this stage, at minimum, the Employer must give their employee their 5 core terms of employment statement:

  •  the full names of the employer and the employee;
  •  the address of the employer;
  •  the expected duration of the contract, in the case of a temporary contract, or the end date if the contract is a fixed-term contract;
  •  the rate or method of calculation of the employee’s pay;
  • the number of hours the employer reasonably expects the employee to work per normal working day and per normal working week. (this is a new addition)

The other 11 terms of employment contracts are required to be given to the employee under the Terms of Employment (Information) Act 1994, the requirement will gas to be given within the existing two-month period.

Having Contracts of Employment in place can help to safeguard the Company in the event of employment litigation or Labour Court hearings. As as result, Employers will always be prepared and protected under the employment law.

What are the reasons why Employers need to issue a Contract of Employment?

  • It outlines the requirements of the position and the conditions applied for the person to work

  • The Contract addresses the legal requirements and responsibilities of the Employer and employee

  • If there is a poor performance from an employee, the Employer has the Contract as a legal base. To proceed on how to manage the employee in this situation

  • The use of probationary periods is fundamental for all new employees. An example of what an employee’s rights are in the event of not having a contract in place

  • If the Employer fails to give written details of the terms of employment, the employee can bring a complaint to a Rights Commissioner. The employee must make the complaint when in work or within six months of leaving the job

The Contract requirements

  • Full name of the Employer and the employee

  • The address of the Employer

  • The address of the place of work, or where the place of work will be

  • Nature of work or job title

  • Start date

  • Temporary or fixed-term Contract

  • Payment

  • Date of payment

  • National Minimum Wage

  • Hours of work, intervals

  • Terms of Paid leave, and sick leave

  • Conditions relating to pensions and pensions’ schemes

  • Collective agreements

  • Period of notice

Changes in the contract

Employers must notify their employee of any changes that occur in their contract, including date and reason for the change. This written notification must be delivered within one month after the change is in place. If the change is due to external reasons, such as changes to legislation, collective agreements or administrative provisions, the Employer is not obligated to notify the employee of same. However, it would be considered ‘Best Practice’ to keep your employees up to date.

Employees Working Abroad

An employee Working Abroad is also entitled to details of the following:

  • The period of employment outside the State
  • The currency of payment
  • Any additional benefits-in-kind or cash the employee will receive
  • The terms and conditions applicable to the employee’s return home

If you need further HR support, we can help your business to comply with employment law. Talk to one of our HR Consultants today!