This "Brief Guide" gives information on Contracts of Employment in the Republic of Ireland including minimum required terms and conditions and more information on permanent, fixed term and specific purpose contracts. This document can be downloaded at http://www.collierbroderick.ie/Services/HR%20Administration/Contract%20of%20Employment.asp
Please be informed that the Labour Code numbered 4857 (โLabour Codeโ) regulates the working conditions and also rights and obligations of the employees and employers. The Labour Code shall apply to all employers, employer representatives, employees and workplaces except those listed under Article 4 of the Labour Code. There are two types of termination of the employment contract stipulated under the Labour Code; 1) Termination with notice period and 2) Immediate Termination due to justified reasons.
Ms Loh Sub Mui, a HR generalist with 20+ years experience, spoke on the laws and challenges in terminating employees to WomenBizSENSE members. She is a highly experienced group HR Manager with a locally established group of companies. Her work requires her to deal with industrial relations matters in both unionized and non-unionized environment.
Please be informed that the Labour Code numbered 4857 (โLabour Codeโ) regulates the working conditions and also rights and obligations of the employees and employers. The Labour Code shall apply to all employers, employer representatives, employees and workplaces except those listed under Article 4 of the Labour Code. There are two types of termination of the employment contract stipulated under the Labour Code; 1) Termination with notice period and 2) Immediate Termination due to justified reasons.
Ms Loh Sub Mui, a HR generalist with 20+ years experience, spoke on the laws and challenges in terminating employees to WomenBizSENSE members. She is a highly experienced group HR Manager with a locally established group of companies. Her work requires her to deal with industrial relations matters in both unionized and non-unionized environment.
The HR Manager is the most critical role in the HR Organization. The HR Manager represents Human Resources and shares responsibilities with the HR team and the internal client.
The role of the HR Manager is difficult, and the most experienced HR Professionals should be promoted to the role of the HR Manager.
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
If youโre in the process of launching a business or are reevaluating your employment contract, below are some key components that you should be sure to include!
The HR Manager is the most critical role in the HR Organization. The HR Manager represents Human Resources and shares responsibilities with the HR team and the internal client.
The role of the HR Manager is difficult, and the most experienced HR Professionals should be promoted to the role of the HR Manager.
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation Management is a Process of compensation management is to establish & maintain an equitable wage & salary structure & an equitable cost structure .it involves job evaluation, wage & salary survey, profit sharing &control of pay costs.
According to Thomas J. Bergmann(1988) compensation consists of four distinct components:
Compensation = Wage or Salary + Employee benefits +Non-recurring financial rewards+ Non-pecuniary rewards.
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
If youโre in the process of launching a business or are reevaluating your employment contract, below are some key components that you should be sure to include!
HR Policies & Employment Legislation
Employment Legislation and Standards
Employment standards are the minimum standards of employment for workplaces required by law. Employment standards cover many aspects of employment including, but not limited to, the following topic areas:
Minimum wage
Minimum daily pay
Meal breaks
Payment of earnings (paydays)
Hours of work
Overtime
Statutory holidays
Annual vacation
Vacation pay
Employment of people under 18
Leave from work
Resolving disputes
Termination
Maternity leave
Weekly day of rest
Deductions
Keeping records
Sexual harassment
Probationary periods
Parental leave
Definition of "employee"
Any HR policies that you develop around the above topics, and any others covered by employment standards, must not provide less than what is offered in the legislation and/ or regulations. The employment standards legislation offers minimum standards; employers are free to develop policies or practices that enhance (provide better standards) than what is allowed for in the law.
HR Policies & Employment Legislation
Human Rights Legislation
Human rights legislation is put in place to protect people from discrimination. It seeks to guarantee people equal treatment regardless of certain identified characteristics (called โprohibited grounds of discriminationโ) that have attracted historical stereotyping or bias in relation to employment.
Employers, including nonprofit organizations, need to be aware of human rights legislation as it applies to all practices of employment, including:
Recruitment ads
Application forms
Interviews
Hiring
Dismissal/termination
Promotion
Demotion
Benefits
Wages
Workplace harassment
As organizations strive to create a better world through their missions, it is important that they also work at creating inclusive workplaces that are respectful and welcoming of diversity. Most of the sites below have excellent resources and tools that your organization can use in creating policies, in the hiring process, and in building a more diverse and respectful workforce. We encourage you to explore several of the websites below as they offer a wealth of information that can often be applied across provincial/territorial lines. Particular attention should be paid to the employerโs duty to accommodate an employee in the workplace.
As a regional business hub and an open economy, Singapore has an eclectic mix of human capital. The Singapore government has a well-thought out and structured legislation in place in the form of the Singapore Employment Act (SEA), which is the main labor law of the country.
The SEA clearly spells out the basic terms and conditions of employment and the rights and responsibilities of employers as well as employees under a contract of service.
The Singapore government also ensures that the Act, while in line with the international legislations, also provides adequate protection to all vested parties in the process of employment. Developing a proactive and harmonious labor, industrial and government relationship has remained the top priority of the legislation.
Breach of an Implied ContractA small number of employees includi.docxAASTHA76
ย
Breach of an Implied Contract
A small number of employees including professional athletes, high-level managers like Dov Charney (see the โClippingsโ feature), and entertainers have โexpressโ (i.e., explicit, mutually acknowledged) contracts of employment that are negotiated, executed in writing, signed, and specify a particular term of employment (or specific grounds under which the contract can be terminated). If an employee with an express contract is terminated prior to the expiration of the contract, the employer will be liable for damages for breach of contract unless the employer can show that there was cause to terminate. Most often, contractual disputes of this type are settled by negotiations between the parties.
But the vast majority of employees do not have express contracts of employment and are employed at will. Nevertheless, under theย implied contractย exception to employment at will, the right of employers to terminate at will can be limited by promises of job security. Even in the absence of an express contract of employment, written or oral statements by employersโand their entire course of conduct in dealing with employeesโcan give rise to enforceable contractual rights to something other than employment at will. The โsomething otherโ might be employment for a specified term, termination only for certain reasons (e.g., โfor causeโ), or use of specified procedures when making termination decisions (e.g., progressive discipline). If an implied contract exists, discharged employees can sue for wrongful termination based on breach of the implied contract.
Criteria for Determining the Existence of an Implied Contract
Most statements made by employers, whether orally or in writing, are not contractually binding. However, the following factors point to the existence of an implied contract:
ยท โขย A specific promise was made.
ยท โขย The promise was made frequently and consistently.
ยท โขย The source of the promise was someone with sufficient authority to offer it.
ยท โขย The promise was communicated to the employee.
ยท โขย The promise was not highly conditional (i.e., dependent on the employerโs own judgment).
ยท โขย The employerโs entire โcourse of conductโ (e.g., policies, practices, statements, industry practices, employee tenure) was consistent with the promise.
ยท โขย There was an exhaustive listing of dischargeable offenses in a handbook (and the offense for which termination occurred was not included in that list).
ยท โขย A change to a less protective policy was not communicated to employees.
ยท โขย There was no effective disclaimer.
Vague, stray, or highly conditional promises do not evidence intent to depart from employment at will. Statements such as โyou have a promising future with the companyโ (lack of specificity) or โyou will have a job here for as long as we are pleased with youโ (conditionality) are unlikely to be enforceable. The statements relied on must be sufficiently specific to constitute โoffers,โ rather than mere general statements of ...
This "Brief Guide" give information on employment records which need to be retained in the Republic of Ireland as well as what the National Employment Rights Agency (NERA) inspect. This document can be downloaded at http://www.collierbroderick.ie/Services/HR%20Compliance/HR%20Audit.asp
This "Brief Guide" gives information on temporary contracts of employment including fixed-term contracts, specific purpose contracts, zero hours contracts and casual contract. This document can be downloaded at http://www.collierbroderick.ie/Services/HR%20Compliance/Employment%20Contract.asp
This "Brief Guide" gives information regarding individual and collective redundancy - including compulsory and voluntary redundancy - in the Republic of Ireland. This document can be downloaded at http://www.collierbroderick.ie/Services/HR%20Support/Redundancy.asp
This "Brief Guide" gives information on the Employee Handbook or Staff Handbook including list of policies and procedures required by law, those recommended highly so as to enable a company to defend itself and finally, discretionary policies. This document can be downloaded at http://www.collierbroderick.ie/Services/HR%20Compliance/Employee%20Handbook.asp
This "Brief Guide" gives information on Alternatives to Redundancy which may be implemented by a company who is potentially facing a redundancy situation. This document may be downloaded at http://www.collierbroderick.ie/Services/HR%20Support/Redundancy.asp
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Contract of Employment
1. Brief Guide to Contracts of
Employment
(This is a brief guide only and should not be considered as a comprehensive guide to an employerโs contractual
obligations)
Page 1 of 7
2. Prepared by
CollierBroderick Management Consultants
Tel: +353 1 8666426
Fax: +353 1 8666457
E-mail: enquiries@collierbroderick.ie
Web: www.collierbroderick.ie
Disclaimer
Whilst every care has been taken by CollierBroderick Management Consultants to ensure that the information
contained in this guide is accurate and up-to-date, as the guide is for information purposes, the contents of these
pages should not be relied upon as a substitute for your own independent HR or legal advice. We recommend
that you always consult a suitably qualified HR or legal professional on any specific matter before relying on any
information in this guide.
No responsibility or liability is accepted by or on behalf of CollierBroderick Management Consultants or anyone
associated with its production for any errors or omissions in the guide, nor for any use the information may be put
to.
Page 2 of 7
3. A Guide to Contracts of Employment
Introduction
When conducting audits, we find that one of the key documents which is consistently missing
from many employee files is the Contract of Employment. This is surprising as it is this โ the
Contract of Employment โ which governs the key terms and conditions of the employment
relationship between the employee and the Company.
By law, within 2 months of the employees start date an employer must furnish an employee
with a โStatement of Terms of Employmentโ as per the Terms of Employment (Information)
Act, 1994.
Items to Consider
Firstly, you should consider what type of contract of employment you wish to give to your
employee. Options include:
- Permanent Contract / Contract of Indefinite Duration
- Fixed-Term Contract
- Specific-Purpose Contract
- โZero-Hoursโ Contract
- Casual Contract
Remember, terms of employment are not just for full-time employees. Part-time and casual
employees must also be furnished with their terms of employment within 2 months of their
start date.
Once you have decided on which type of contract you wish to apply, you should then
carefully consider what clauses / terms and conditions you wish to include.
There are a number of different clauses which need to be considered when formulating a
Contract of Employment. For example, while employment legislation [such as the Terms of
Employment (Information) Act, 1994; Organisation of Working Time Act, 1997; Minimum
Notice and Terms of Employment Acts, 1973-2001, etc] dictates that certain terms and
conditions of employment must be included in a contact of employment, terms and conditions
of employment may also be derived or dictated by codes of practice, custom and practice,
the requirements of the Company, Employment Regulation Orders (EROs) and Registered
Employment Agreements (REAs). Therefore, it is not enough for an employer to simply
follow employment legislation when formulating a Contract of Employment.
Contract Clauses
While a number of contract clauses are required by law, others may be included at the
discretion of the Company.
As previously noted, the Terms of Employment (Information) Act, 1994 states that an
employer must provide an employee, within 2 months of commencing employment, with a
โStatement of Terms of Employmentโ containing:
The names of employer and employee;
The address (or principal place of business) of the employer;
The place of work or specifying that employee is permitted to work at various places;
Page 3 of 7
4. The title of the job or nature of work for which the employee is employed;
The date of commencement of employment;
The duration of any temporary or fixed-term contract;
The rate or method of calculation of remuneration and pay reference period for the
purposes of the National Minimum Wage Act, 2000;
That the employee may request from the employer a written statement of the
employeeโs average hourly rate of pay for any reference period;
Whether remuneration is payable weekly, monthly or otherwise;
Any terms or conditions as to hours of work including overtime โ this includes
specifying hours of work or weekly working hours;
Any terms or conditions relating to paid leave (other than sick leave);
Any terms of conditions relating to incapacity for work due to sickness or injury and
paid sick leave;
Any terms of conditions relating to pensions;
The period of notice which the employee must give or receive to terminate the
employment;
Details of any collective agreement affecting the terms and conditions of employment
(i.e. any Employment Regulation Orders (EROs) and Registered Employment
Agreements (REAs)).
In addition to the above terms, if an employee is working abroad, he / she is also entitled to:
The period he / she will be working outside the State;
The currency in which they will be paid;
Any other benefits in kind or cash that will be provided;
The terms and conditions applicable on the employeeโs return home.
While the above terms and conditions must be included in the Contract of Employment, a
Company may put additional terms and conditions into the Contract of Employment which
will clarify the employment relationship and / or what is expected of each party. For example,
such clauses may relate to:
1. Exclusion of Unfair Dismissals Acts, 1977-2001: Where a fixed-term contract or
specific-purpose contract is being given, the provisions of the Unfair Dismissals Acts,
1977-2001 should be excluded from the natural termination or completion of the
contract.
2. Probation: Specifically, the Company should include a probation period in all
contracts including the right to extend this period and to terminate employment if
necessary.
3. Flexibility: Either as a specific clause or incorporated into other clauses, the
Company should seek to dictate that the employee must be flexible in terms of
location, duties and hours or work.
4. Bonus: While an employer should give details of any bonus the employee will receive,
if the bonus is performance driven, the Company should refer the employee to a
Performance-Related Bonus policy in the Employee Handbook or separate letter
issued them which contains the terms and conditions of the scheme.
Page 4 of 7
5. 5. Annual Leave: The Organisation of Working Time Act, 1997 sets out minimum
entitlements and terms and conditions relating to annual leave. However, nowadays
numerous Companies give employees additional annual leave either in an effort to
attract top calibre staff or to retain / reward staff. As such, for clarity an employeeโs
entitlement, as well as any terms and conditions relating to the taking of annual leave,
should be included in the Contract of Employment.
6. Garden Leave: While the Company must, by law, give details of the employeeโs
notice period, it should also reserve the right to place the employee on garden leave
and pay in lieu of notice.
7. Absence Due to Illness: While a Company is obliged to give details of terms and
conditions relating to sick leave and pay, the Company should also include the right to
check the validity of medical certificates it receives, to request an employee to attend
a medical practitioner of its choice and the right of the Company to receive a report
from any medical which the Company requests the employee to attend.
8. Exclusive Service: Employees have a right to work for another employer in their
spare time, provided this does not conflict with their duties to their employer and does
not result in a breach of the maximum weekly working hours as stated in the
Organisation of Working Time Act, 1997.
9. Grievance and Disciplinary Policy and Procedures: The Unfair Dismissals Acts,
1977-2001 provides that an employer is obliged to furnish an employee with a copy of
the disciplinary policy and procedures within 28 days of commencing employment.
However, as the grievance and disciplinary policy and procedures may change over
time, best-practice would dictate that these provisions and not incorporated in the
Contract of Employment. Instead, an employee should be referred to the Companyโs
Grievance Policy and Disciplinary policy contained in the Companyโs current
Employee Handbook. Furthermore, the Company should note that the terms and
conditions contained within these policies form part of the employment relationship
and agreement.
10. Bully and Harassment: An employer should state, at the very least, that bullying,
harassment and sexual harassment are all unacceptable forms of behaviour and that
complaints will be dealt with under the disciplinary procedure. In addition, the
employee should be referred to the Companyโs Bullying and Harassment Policy /
Respect and Dignity at Work Policy in the Employee Handbook. Furthermore, the
Company should note that the terms and conditions contained within these policies
form part of the employment relationship and agreement.
11. Referral to Other Company Policies: The Company should refer the employee to
certain policies contained in the Employee Handbook (such as the Misuse of
Substance Policy, Diversity Policy, Health and Safety Policy, Safety Statement,
Smoking Policy, Company Property Policy, Use of Company E-mail, Internet and IT
Policy, Use of Own Vehicle for Work Policy, Use of Company Vehicle Policy, Use of
Office and Company Mobile Phone Policy, Dress, Grooming and Personal Hygiene
Policy, etc) and should note that the terms and conditions contained within these
policies form part of the employment relationship and agreement.
12. Confidentiality: It is imperative that the Company outline the need for employees to
maintain confidentiality in relation to Company and client business, information,
products and services. In addition, the obligations of the Company (and thus the
employee as a representative of the Company) as dictated by the Data Protection
Acts, 1988-2003 should be outlined.
13. Intellectual Property: Simply put, โintellectual propertyโ refers to creations of the mind
such as inventions, literary and artistic works, and symbols, names, images, and
designs used in commerce. In this case, the Company should clearly define what it
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6. means by โintellectual propertyโ, state that is owns any and all invention, process, etc
developed by the employee while with the Company and impose an obligation on the
employee to aid the Company to trademark, copyright, etc any intellectual property
should the Company so wish.
14. Restrictive Covenants / Restraint of Trade: A restraint of trade clause essentially
seeks to restrict an employee after terminating their employment with the Company
from using confidential information or trade secrets obtains whilst working for the
Company, working either on their own account in competition with the Company or for
a competitor of the Company and / or soliciting the Companyโs customers, suppliers
or staff. However, these restrictions can be difficult to enforce and thus must be
worded very well.
15. Right to Test for Intoxicants: Today, the big HR issue or topic is the right to test and
employee for alcohol, drugs and / or a combination of both. As clear guidelines in this
area are lacking, and even if the Company does not currently test for intoxicants, it
would be prudent for a Company to include such a clause.
16. Right to Search: In line with the previous clause, and in order to prevent theft, a
Company should include in their Contract a clause giving them the right to search
employee property.
17. Retirement: As there is no mandatory retirement age in Irish legislation at present, a
Company should state a retirement age in all Contracts of Employment.
18. Lay-Offs or Short-Time: In todayโs economic climate, a Company would be wise to
include a clause in all Contract of Employment reserving the right to place an
employee on lay-off or short-time.
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7. For
Consultation Services relating to HR, Employment Law, Contract of
Employment, Policies and Procedures and Employee Handbooks
Contact
Helena Broderick
Managing Consultant
Tel: +353 1 8666426
Mob: + 353 87 9074843
E-mail: hbroderick@collierbroderick.ie
Services are available nationwide through our team of experienced HR practitioners and
employment law consultants
Web: www.collierbroderick.ie
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