It is important to get contracts of employment correct from the very beginning. Contracts let the employee and employer know how the relationship will operate. Importantly, all employers are legally obliged to provide their employees with a written statement outlining certain terms and conditions within two months of commencing employment.
The 1994 Terms of Employment (Information) Act states that contracts at the very basic level must include:
• The full names of the employer and employee;
• The employer’s address and location of business;
• The location/locations at which the employee will work;
• The title/ nature of employee’s work;
• The date of commencement of employment;
• If the contract is temporary – the expected duration of the contract and the date it will expire
• The rate of pay and when the salary is paid i.e. monthly/ weekly
• Any terms and conditions relating to the employee’s hours of work (including overtime), paid leave (e.g. annual leave), sick leave, pension schemes, period of notice the employee is required to give and entitle to receive to end the contract of employment.
The above list will satisfy the very minimum of legal requirements, however, it is also advisable to include the below terms in the contract, depending on the circumstances:
• Probation
• Grievance and disciplinary procedure
• Lay off/ short time
• Garden leave and payment in lieu of notice
• Restrictive covenants
It is crucial that both the employer and employee sign the contract. Both parties should keep a copy. If any changes are to be made to the terms and conditions, the employee should be consulted and their consent obtained.
For more information on this subject please contact John Bollard on 01-679165 or email: john@donaghys.ie