A Guide to Contracts of Employment under Irish Law

Terms of Employment (Information) Act Resources:

• Guide to Terms of Employment under Irish Employment Law
• Bringing a Terms of Employment Claim
• Terms of Employment Cases and Claims
• Contract of Employment under Irish Employment Law (Video)

Statement of Terms / Contract of Employment under Irish Employment Law

The below case is illustrative of how the issue of non-provision of a statement of terms / contract of employment, is dealt with under Irish employment law. 

In A Bar Manager v A Public House ADJ-00026363, the employee brought a complaint to the Workplace Relations Commission (WRC), asserting that he never received any document in writing setting out the details of his terms and conditions of employment. The WRC accepted that the employee never requested such a statement. The employer did not dispute this evidence. 

It was apparent therefore, that no statement concerning his terms and conditions of employment was issued to the employee by the employer. 

Why is a Statement of Terms / Contract of Employment necessary? 

The employer in his case availed of the assistance of a human resources specialist and it was deemed unlikely that he was unaware of his legal responsibilities to this employee regarding his entitlement to a written statement setting out his terms and conditions of employment. 

The effect of not providing such a statement means that the employment relationship is tarnished with uncertainty and it is difficult for the employee to assert his rights during, and at the termination of his employment. 

When should an employee receive a Statement of Terms / Contract of Employment?

The WRC went on to note that Section 3 of the Terms of Employment (Information) Act was amended by the Employment (Miscellaneous Provisions) Act 2018, resulting in a new obligation on employers to provide a written statement of certain terms and conditions of employment within five days of an employee’s start date. 

What should be included in a Statement of Terms / Contract of Employment?

Generally written up in the form of a contract, a statement of terms includes the following:

• The name of the employer and the employee;
• The address of the employer;
• The place of work, or, where there is no fixed place of work, the statement must specify that the employee is required to work at various places;
• The job title or the nature of the work that the employee is required to carry out;
• The date that the employee commences in the job;
• If the contract is temporary, the expected duration, or if the contract is for a fixed-term, then the end date of the fixed-term;
• The rate or method of calculation of the employee’s pay;
• The frequency of pay;
• Any terms or conditions relating to hours of work (including overtime);
• Any conditions relating to paid leave (other than paid sick leave);
• Any terms or conditions relating to –
• Incapacity for work due to sickness or injury and paid sick leave;
• pensions and pension schemes;
• The notice that the employee is required to give and the notice that he or she is entitled to receive at the termination of their employment;
• Details of any collective agreement which affects the employee’s terms and conditions of employment.

Redress for not receiving a Statement of Terms / Contract of Employment

The WRC referred to the Labour Court decision in the case of Megan Hayes Kelly and Beechfield Private Homecare, DWT 1919, where Ms Hayes Kelly claimed that her employer was in breach of the Terms of Employment (Information) Act because there were omissions and errors in her contract of employment. In his determination on the case, the Chairman of the Court, Mr Haugh, considered the errors and omissions to be “at the serious end of the spectrum” and awarded the maximum of four weeks’ pay in redress. 

As the failure to issue any statement of terms and conditions of employment must be considered to be more serious than issuing an imperfect statement, the WRC followed the authority of the Labour Court and made the maximum award of four weeks.