Don't Get Caught Out: The 5 Core Terms
Throughout the pandemic some businesses were lucky enough to be able to hire new employees which is why it is important for employers to know their legal obligations in the first few days of an employees employment. The Terms of Employment (Information) Acts 1994 to 2014 clarifes at the outset what the terms of employment are, in order to avoid problems which may arise at a later date.
Under the Terms of Employment (Information) Acts 1994 to 2014:
- The employer must give an employee a written statement contains the five core terms of employment within 5 days of commencing employment.
- The employer must give an employee a full written statement of their terms of employment within 2 months of starting employment.
- The employer must notify the employee of any changes in the particulars of the statement within 1 month of the change taking effect.
Written Statement of Terms of Employment
The purpose of the written statement of terms of employment is to clarify the terms of a person's employment and to avoid uncertainty or misunderstandings, which can often lead to a dispute at a later date e.g. rates of pay for overtime hours not specified in advance.
It is important to note that a written statement of terms of employment is not necessarily the same as a contract of employment, although the two often overlap.An employer is obliged to issue a written statement of terms of employment to the employee which must be signed and dated by the employer however there is no requirement for an employee to sign a written statement of terms of employment.
The 5 core terms of employment which an employer must provide to an employee in writing within 5 days of commencement of employment are as follows:
1. Full names of the employer and the employee
2. Address of the registered office of the employer/ in the state/ the principal place of the relevant business
3. If it is a temporary contract, the expected duration of that temporary contract should be stated and if it is a fixed term contract, the date when that contract expires should be stated.
4. The rate or method of calculation of the employee's pay and the pay reference period for the purposes of the National Minimum Wage Acts 2000 and 2015.
5. The number pf hours which the employer reasonably expects the employee to work per normal working dat and per normal working week.
To avoid issuing two versions of a written statement of terms of employment (one version with the 5 core terms and the second version with the remaining terms0 it would be prudent for an employer to issue one version containing all terms within 5 days, or indeed before the employment commences so the employee is fully aware of the terms prior to commencement.
Additional Terms to Include in the Written Statement
The whole purpose of the written statement is to make absolutely clear to an employee what the terms of their employment are. An employer could add additional terms to avoid any confusion or uncertainty that might arise at a later date. Issues which may arise might include:
- Appearance/ Dress Code - Formal or Casual
- Compassionate Leave - Whether paid leave is granted for the death of a family member
- Confidentiality Clause
- Alcohol & Drugs Misuse Policy
- Study Leave
- Lay-Off & Short Time
- Data Protection Policy
- Business Travel Arrangements
- Health & Safety
This is not an exhaustive list. Where additional clauses or policies are included, the employer should also specify what disciplinary action will be taken against an employee who breaches any of these clauses.
The written statement must be given tot he employee even if the employee's employment ends before the end of the period in which the statement is required to be given. Where the employee leaves within 5 days of commencement, they should still be issued with a written statement containing the 5 core terms. Where an employee leaves within 2 months of commencement, the employer must still give the ex-employee a written statement, provided the employee has been in the continuous service fo the employer for at least one month.
The Act also specifies that an employer is required to retain the written statement for the duration of the employee's employment and for at least 1 year after the employment has ceased. The Social Welfare Consolidation Act 2005 states that an employer is required to retain a copy of the written statement for 2 years from the date on which the statement was issued for inspection by a social welfare inspector. The employer should ensure that a copy of the written statement is held for the longer of these durations.
Bright Contracts' contracts within the software not only cover the 5 core terms but also the additional terms. You can view a demo of the software and its contracts here. You can download a trial of the software here.
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- Introducing Contracts & Handbooks to Existing Staff
- Retirement in the Workplace: Is it enforceable?
