Contracts of Employment - Guidelines
The information on this page is designed to provide general guidance on contracts of employment. In cases of doubt or where further information is required Boards of Management are advised to seek professional advice.
Information Available on this Topic
 News & Publications (Downloads)
- Guide to Labour Law - National Employment Rights Authority (NERA), 2007
- The Organisation of Working Time Act, 1997 - Explanatory Leaflet for Employers and Employees - Dept. of Enterprise, Trade & Employment
- Termsof Employment (Information) Act, 1994 & 2001- Explanatory Booklet for Employers and Employees - Dept. of Enterprise, Trade & Employment
- Protection of Employees (Fixed-Term Work) Act, 2003 - Explanatory Booklet for Employers and Employees - Dept. of Enterprise, Trade & Employment
How is a contract formed?
A contract may be formed in 3 ways:
- by express written agreement;
- by express oral agreement;
- by the conduct of the parties, that is, the terms of a contract though not expressed can be held to exist because of the conduct of the parties and custom and practice.
However, the Terms of Employment (Information) Acts 1994 and 2001 provides that an employer must issue their employees with a written statement of terms and conditions relating to their employment, such a written statement must include the following:
- The full names of the employer and the employee
- The address of the employer
- The place of work, or where there is no main place of work, a statement indicating that an employee is required or permitted to work at various places
- Job title or nature of the work
- Date of commencement of employment
- If the contract is temporary, the expected duration of employment
- If the contract is for a fixed-term, the date on which the contract expires
- The rate of pay or method of calculating pay
- Whether pay is weekly, monthly or otherwise
- Terms or conditions relating to hours of work, including overtime
- Terms or conditions relating to paid leave (other than paid sick leave)
- Terms or conditions relating to incapacity for work due to sickness or injury
- Terms or conditions relating to pensions and pension schemes
- Periods of notice or method for determining periods of notice
- A reference to any collective agreements which affect the terms of employment
In the interest of all parties, it is advisable that all conditions attached to a job offer are clarified with, and understood by, the prospective employee before a firm offer of employment is made, ideally in writing.
Who should get a contract?
Any person employed for a period of one month or more of continuous service must be provided with a written statement of the terms and conditions of employment.
When should a contract issue?
New employees must be given a written statement containing, at a minimum the specified particulars of their employment, within two months of the commencement of their employment, even if the employment has terminated before the expiry of the two month period.
Permanent Contract of Employment
This contract contains no end-date and is capable of being terminated on the giving of the required contractual notice. However, the employer may not exercise the right to terminate the contract without good reason.
Contract of Indefinite Duration (CID)
A CID is comparable to a permanent contract of employment. A fixed-term employee who has been employed for a certain continuous period of time (usually 4 years) must, in the absence of objective grounds justifying the renewal of a fixed term contract, be awarded a contract of indefinite duration. Boards of Management should seek professional advice if they are unsure of an employee’s entitlement to a CID.
Temporary Contracts of Employment
A person employed on a temporary basis is referred to as a fixed-term employee. A fixed term employee is a person who has entered into a contract of employment with an employer where the end of the contract is determined by an objective condition such as arriving at a specific date, completing a specific task or the occurrence of a specific event.
Such an employee may be employed subject to the conditions of one of two contract types;
- Fixed term Contract of Employment, or,
- Fixed Term Specific Purpose Contract of Employment
A fixed term contract contains a date on which the contract will expire. A fixed term contract may also contain a clause providing that either party may terminate the employment before the expiry date on the giving of due notice. Without such a clause, an employee on a fixed-term contract could sue for breach of contract if the employer terminated the contract before the expiry date.
A fixed term specific purpose contract also contains a commencement date but it differs from a fixed term contract as it does not state exactly when the contract will end. Instead, the contract is stated as being for a specified purpose (e.g. providing cover for an employee who is on sick leave) and that it will end when the purpose for which it has been given ends.
Changes to a Contract of Employment
An employer may, after employment has commenced, wish to vary the terms of the contract. As a general rule, with the exception of changes necessitated by statute, a contract of employment may not be altered unilaterally. Changes to a contract may be made in the following ways;
- by agreement with the parties;
- by conduct or implication – i.e. where a change is made, is not opposed and the contract continues under the new terms for a period of time, the parties will be deemed to have accepted the new terms of the contract.
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