The purpose of the contract is to detail the requirements and specifications of the position. Sections can include compensation information, an outline of job duties and whether the new worker is an employee or independent contractor. Both the employer and employee must agree to and sign the contract for it to become legally binding. The employment contract contains general information such as the employee's name, job title, job location, starting date for the position, department information and the name of the company.
If a supervisor has been assigned, the name of this person will also be included. This section might include expected work hours, whether the employee is considered full time or part time and if he is an exempt or nonexempt employee. A company can hire someone as either an employee or an independent contractor. An employee's status is important because it will determine what benefits an employer is required to offer.
For example, an independent contractor is not eligible for benefits offered to full-time employees, but also cannot be held to a company's hourly work requirements or a non-compete clause. An employee contract outlines the job description and duties for the position. This is especially important if the job description has been changed or tailored for the employee.
This can happen when an employee negotiates special arrangements or duties for the position. The agreed-upon salary for exempt employees or the hourly rate for nonexempt employees is outlined in the contract. Any special compensation or bonuses that might have been negotiated should also be included in this section. The employee contract details the process for separation from employment, whether initiated by the employee or employer.
It also covers disciplinary action that can be taken against the employee for violating the terms of the employment contract. A deemed employee situation will arise where a person is working for an employer through another agency or body. That person will be a deemed employee of the person for whom they are doing the work. This situation will commonly arise where employment agencies place people in a work environment.
The employment agency must be one as defined by the Employment Agency Act, but this act defines an employment agency very widely. It is important to note though that the notion of a deemed employee only applies in relation to the application of specific statutes which provide for protection for a deemed employee.
However it can be a dangerous situation where a business does not know of their potential liability to a deemed employee until a problem occurs and the deemed employer can be held responsible for a dismissal over which he had no control or knowledge. You might also be interested in the law surrounding temporary agency workers. Ownership of a shareholding in a company does not prevent the owner from being an employee of the company. But a controlling shareholder may have difficulty establishing that he was an employee.
Before entering into a contract of employment there are three areas that an employer needs to consider carefully. These areas can be broadly categorized as follows:. Advertising the job can be fraught with danger for the employer as it is easy to fall foul of employment equality legislation.
In addition the wording of the advertisement can be held to form part of the subsequent contract of employment. Employers need to be careful not to ask questions which fall foul of the Employment Equality Acts, and avoid asking questions that could be considered discriminatory on the grounds of age, marital status, sex, and the other grounds referred to in employment equality legislation.
Keeping note of the interview is a smart practice as what is said at interview by both parties can be held to form part of the subsequent contract.
The employer should make a job offer conditional on certain conditions being fulfilled, depending on the position. These conditions may cover Garda vetting, clean driving licence, health to do the job, suitable references, registration with professional bodies, and others-this will depend very much on the nature of the work and position.
The Data Protection Commissioner has held that you need written consent to take up references. However there is no general requirement in law that an employer furnish a reference. There is no reason why a prospective employee should not be asked to undergo a medical prior to a job offer being made even though it is common for employers to only require a medical examination after the offer has been made and accepted.
This includes the names and addresses of both employer and employee, the place of work, the title of the job, pay, any terms relating to sick pay, periods of notice and many other basic details. The express terms of employment are those terms clearly agreed between the employer and employee and can be oral or in writing. The principal express terms that should be included in any document setting out the terms and conditions of a contract are set out in this article.
The Terms of Employment Information Acts provide that employees must be given a statement, signed by the employer, of certain of their terms and conditions of employment within 2 months of their employment.
If the employer fails to provide this statement to the employee a claim can be made to the Rights Commissioner service who may order compensation of up to 4 weeks remuneration and require the employer to give the statement of terms to the employee.
As an employer you need to be clear what terms and conditions are obligatory in the employment contract as a result of the Terms of Employment Information Acts and the additional terms and conditions which might be advisable and prudent for the employer. Legal advice is recommended as the consequences of a badly drafted contract with an employee will be far more costly than the cost of having a properly drafted contract of employment by a legal professional.
Providing for termination of the employment contract is an important term of the contract of employment, one which the employer needs to take care over, particularly the notice period. Reasonable notice will vary from contract to contract.
The statutory minimum notice periods on termination of employment are as set out in the Minimum Notice and Terms of Employment Acts to which are based on years of service of the employee. Employees are entitled to the above notice periods or pay in lieu except in cases of dismissal for misconduct where the employer is entitled to terminate the employment immediately without notice.
Both the employer and employee have the right to terminate the contract of employment without notice due to the misconduct of the other party. Any claims in respect of breaches of the Minimum Notice and Terms of Employment Acts go to the Employments Appeal Tribunal which can award compensation to the employee for not receiving proper notice. Note that if the employee was sick or on strike during the notice period no compensation is payable.
Both employer and employee have a broadly similar right under common law to terminate the contract of employment. In general punitive damages allowed following a dismissal will be restricted to remuneration to which the employee was entitled and not for any distress caused by the manner in which the dismissal has occurred. Changing or varying the terms and conditions of a contract of employment can only be done with the agreement of the parties.
It cannot be unilateral. It is worth noting that agreement can be express, implied, or by acquiescence. Sometimes variation by one of the parties becomes necessary to give the contract commercial efficacy. If a term is so obvious that common sense would dictate that it must be included in the contract the Courts will imply it into the contract.
What about variation of the terms of employment through the trade union negotiating on behalf of the employee? Generally employees will accept changes negotiated on their behalf by their trade union. Take a more detailed look at the legality of trade union negotiated variations of contracts. Some contracts of employment will have terms of employment implied into them by custom and practice of the employment or industry.
However this does not give the employer the right to make unreasonable changes and courts and tribunals will always look to see if the change was necessary and reasonable. It is worth noting also that where an employer is entitled in law to make changes to contracts of employment employees are still entitled to engage in trade disputes to attempt to bring about change.
This is the case even in companies where unions are not recognised as the Labour Court can be asked by the union to investigate the dispute. A distinction must be drawn between an employee co-operating in a change and acquiescing to a contractual variation. Courts will not allow employers to slip in changes unknown to an employee.
Even where the employer is legally entitled to take certain action employees may engage in a trade dispute and seek to persuade to bring about the changes they require.
Collection agreements and contracts of employment? Read about the legality of collective agreements and the tests applied. Terms and conditions of employment-a re employers entitled to unilaterally vary such terms and conditions?
Where an employment contract does not expressly enable the employer to vary the terms of employment, employers may either:. Attempt to impose the change unilaterally not recommended. A claim of constructive dismissal under the Unfair Dismissal Acts or at common law; 2.
A claim for damages for breach of contract; 3. A claim in respect of an unlawful deduction under the Payment of Wages Act ; 4. Industrial relations issues, and 6. Injunctive proceedings to prevent the unilateral variation.
Such variation must be agreed between the parties regardless of whether the term is express or implied. In practice, whether or not an employee benefit constitutes a term or condition of employment may be somewhat academic if changing it is likely to give rise to industrial relations issues and human resources problems.
Although the claimant argued that he had been unfairly dismissed, the tribunal held that a genuine redundancy situation existed. Otherwise the employee may eventually be held to have implicitly accepted the change.
Importance of terms and conditions of employment As starting a new job the Employment Rights Act says that all employees must be given a copy of their terms and conditions of employment, which should be given within a month.
The Importance of the Importance of Terms and Condition of Employment. For this part of the assignment I will be explaining and importance of terms and conditions of employment. The terms and conditions are very important for the employer as for the employee because it lays out the frame work of their role in the organisation.
employment as a permanent, casual, full-time or part-time worker; hours of work; wages, salary levels or remuneration packages; any other terms and conditions offered to you at the start of employment. Setting awards and agreements. Your employment benefits and conditions may be set down in an award, enterprise agreement or individual . Amending terms of employment in Practice. In the course of varying terms and conditions employers should: 1. Maintain clear communication with employees; 2. Provide employees with reasonable notice of any variation to terms and conditions; 3.
The Importance of an Employment Contract For both employees and employers, the needs and legalities vary enormously from country to country. Here is a hairdresser’s overview of considerations and definitions. Terms of employment are conditions that an employer and employee agree upon for a job. Terms of employment include an employee's job responsibilities, work days, hours, breaks, dress code, vacation and sick days, pay and more.