In Business
Contracts of Employment
By Kenneth Buchholtz - M.B.S. HRM, Chartered FCIPD - Campbell International
Nov 23, 2009 - 11:24:28 PM

To the end of June 2009 NERA inspectors carried out a total of 10,445 calls, interviews and inspections and breaches were detected in 18% of cases. Unpaid wages totalling €1,131,224 were identified compared to almost €1 million in the same period of 2008.

The sectors with the highest non-compliance were:

• Catering                                     79% non-compliance
• Retail Grocery Allied Trade         74% non-compliance
• Hotels                                        71% non-compliance
• Construction                              63% non-compliance

It’s the recession you say. Yet, these figures have not been affected by the recent recession and the same figures were registered during the height of the economic boom.

The most basic necessity for a company is to have a contract of employment for their employees. The contract will include some or all of the following elements (regardless of whether the employer and employee have specified them or not):

• The terms that the courts say are to be included in every contract of employment. Examples include the duty of every employer to provide a safe workplace and the duty of every employee to carry out the job to the best of his/her ability. This part of the contract is occasionally referred to as "common law".
  
• Terms that must be part of the contract as a result of laws passed by the Dail. Examples include the right to take maternity leave. Such terms are part of the contract even if the employer and employee do not specifically include them and replace any agreement between the employer and employee not to apply the particular law. So, the statutory right to take maternity leave overrides any agreement between the employer and employee that the employee will not take maternity leave.
  
• Terms that the Irish Constitution states must be in every contract, for example, the right of an employee to join a trade union.
  
• Registered Employment Agreement (REA)
  
• Joint Labour Committee Regulations (JLC)
  
• EU laws
  

In addition, custom and practice in a particular workplace may form part of a contract. An example would be a particular level of overtime pay for employees.

While the complete contract of employment does not have to be in writing, the Terms of Employment (Information) Act, 1994 says that certain terms of the contract must be put in writing.

The terms that must be included in any contract of employment include:

• The full name of the employer and employee
• The address of the employer - a registered office if the employer is a company
• The place of work or, if it is the case, the fact that the employee is required to work in a variety of locations
• The job title or the nature of the employment
• The date the employment began
• The details of the contract if it is fixed
• The expected length of the contract if it is temporary
• Details of rest periods and breaks as required by law.

There are a number of terms within the contract that the employer does not have to put into writing, instead he or she can refer the employee to other documents, e.g., a pension scheme booklet or a collective agreement, provided the employee has easy access to these documents. The terms of the contract in question are:

• The rate or method of calculation of the employee's pay and the pay reference period for National Minimum Wage purposes
  
• The fact that the employee can request a written statement of his or her average hourly pay from his or her employer
  
• Hours of work, including overtime
  
• Details of paid leave
  
• Sick pay and pension, if you do not pay sick pay this must be stated
  
• Period of notice to be given by the employee to the employer
  
• Details of any collective agreements that may affect the employee's terms of employment.
  

The statement of the terms within the contract must be signed and dated by the employer; the employee is not required to sign it. The employer must retain a copy of the contract during the period of the employee's employment and up to one year after it ceases. 

Employees who are under 18 must also receive a copy of an abstract or summary of the law relating to the employment of children and young people within one month of beginning the job.

If the employment ends during the 2-month period, the employee is still entitled to the written details of the job. These are the important issues regarding employment contracts. However, they are not all of them.

If you wish to talk to me regarding employment contracts and want to ensure that your company is compliant and does not breach the legislation which could cost you, I am willing to talk to you. Give me a call at 065 7071933 or send me an e-mail.

CAMPBELL INTERNATIONAL

HUMAN RESOURCE CONSULTANTS

CLONCOUL HOUSE,

ENNISTYMON,

CO CLARE.

TEL: 065 7071933

E-MAIL: INFO@CAMPBELLINTERNATIONAL.NET

WEBSITE: WWW.CAMPBELLINTERNATIONAL.NET