FAQ Contracts of Employment

6 Questions Answered on Contracts of Employment

1. Does every employee need a Contract of Employment?

Yes. Employers must provide all employees with a written statement of core terms of employments.

2. When should a contract of employment be provided?

A contract of employment should be issued within 5 days of the commencement of employment. Additional terms must be provided in writing within 2 months of the commencement of employment.

3. What are the basic terms of a contract of employment?

The basic terms which must be included in a contract of employment are known as the core terms and must be provided to all employees in writing within 5 days of the commencement of employment.

4. How should a contract of employment be given to employees?

The contract of employment should be in writing and provided at the earliest opportunity. All terms should be agreed with the employee in advance.

5. What are the Core terms of a contract of employment?

The core terms that must be provided are:

1. The full names of the employer and employee
2. The address of the employer
3. The expected duration of the contract (where the contract is temporary or fixed term)
4. The rate or method of calculating pay and the pay reference period for the purposes of the National Minimum Wage Act 2000 (for example, a week, a fortnight or a month)
5. What the employer reasonably expects the normal length of an employee’s working day and week to be, in a normal working day and in a normal working week.

6. What basic information must be included in a contract of employment?

The contract of employment must include the following terms:

1. The full names of the employer and employee
2. The address of the employee
3.  The expected duration of the contract (where the contract is temporary or fixed term)
4. The rate or method of calculating pay and the pay reference period for the purposes of the National Minimum Wage Act 2000 (for example, a week, a fortnight or a month)
5. What the employer reasonably expects the normal length of an employee’s working day and week to be, in a normal working day and in a normal working week.
6. The place of work
7. The title of the job or the nature of the work
8. The date the employment started
9. Pay intervals (for example, weekly or monthly)
10. Any terms or conditions relating to hours of work (including overtime)
11. Paid leave (other than sick leave), including annual leave and public holiday entitlement
12. Sick pay
13. Pension and pension schemes
14. Period of notice to be given by employer or employee
15. Details of any collective agreements that may affect an employee’s terms of employment