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Contract of Employment – What should it contain?

We often get asked by both employers and employees what should be included in a statement or contract of employment.

Firstly, you should note that there are 2 pieces of legislation governing this. The first sets out terms to be provided within 2 months of commencement of employment and the second, core terms which must be provided within 5 days of commencement of employment.

  1. The Terms of Employment (Information) Acts 1994 (as amended) provides that employers must furnish employees with the following terms and conditions in writing not later than two month’s after the employee’s commencement of employment with the employer:(i) The names of employer and employee;(ii) The address (or principal place of business) of the employer;(iii) The place of work (or specifying that employee is required or permitted to work at various places);(iv) The title of the bob or nature of work for which the employee is employed;(v) The date of commencement of employment;(vi) The duration of any temporary or fixed term contract;(vii) The rate or method of calculation of remuneration and pay reference period for the purposes of the National Minimum Wage Act 2000;(viii) That the employee may request from the employer a written statement of the employee’s average hourly rate of pay for any reference period;(ix) Whether remuneration is payable weekly, monthly or otherwise;(x) Any terms or conditions as to hours of work or overtime;(xi) Any terms and conditions relating to paid leave (other than sick leave);(xii) Any terms and conditions relating to incapacity for work due to sickness or injury and paid sick leave and to pensions and pension schemes;(xiii) The period of notice which the employee must give or receive to terminate the employment and(xiv) Details of any collective agreements affecting the terms and conditions of employment.
  2. The Employment (Miscellaneous Provisions) Act 2018 came into force in March 2019. It introduced a new requirement in terms of “core terms” and conditions to be supplied within 5 days of commencement of employment. The “core” terms and conditions are as follows:(i) The full name of the employer and the employee(ii) The address of the employer(iii) The expected duration of the contract (where the contract is temporary or fixed term)(iv) The rate or method of calculating pay(v) What the employer reasonably expects the normal length of the employee’s working day and week will be

Employers should note that there are penalties for failing to comply with the above pieces of legislation including claims before the Workplace Relations Commission.

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