A contract of employment is the basis of the relationship between an employer and an employee. It is of the utmost importance that you get it right. It will provide essential information for both employer and employee and will hopefully provide invaluable assistance in the event of a dispute.
What terms must be included in a Contract of Employment?
All employees are entitled to a written statement of their terms and conditions of employment within 2 months of commencement of employment. (Terms of Employment Act, 1994).
This statement/contract must include the following terms:
- Full name of employer
- Full name of employee
- Address of employer
- Place of work (if applicable)
- Nature of the work
- Commencement date
- If a fixed term contract/ temporary contract then the expected duration of the contract.
- Period of Notice required for either party to terminate the contract
- Terms and conditions relating to pension schemes, if any
- Terms and conditions relating to paid leave, if any
- Terms and conditions relating to sick pay *
- Terms and conditions relating to overtime
- Notification of any change to employment terms and conditions within one month of the change.
* There is no legal obligation to pay sick leave.
What terms we recommend should be included in an Employment Contract:
- Probationary period & policy
- Internet & mobile phone usage
- Company policy on bullying and harassment
- Deductions from pay
- Disciplinary Procedures
- Grievance Procedures
- Flexibility with duties and/or job location
- Lay Off and Short Time
- Pay reviews and/or performance reviews
- Non – compete clause post termination
- Non – solicitation of clients post termination
- Data Protection
- Arbitration Clause