An employment contract forms as soon as an employee accepts a job offer and starts work. This contract subsists throughout the employment relationship whether it is in writing or not.
The law does not state that it is necessary to have a written contract of employment however, the Employment Rights (Northern Ireland) Order 1996 states that an employee must be given a written statement of employment particulars within 8 weeks of their starting work. This means that certain terms of the contract must be given to the employee in writing. The necessary “particulars” include what the employee is to be paid, hours of work, holiday entitlement, notice periods, place of work and information on disciplinary and grievance procedures. At an employment tribunal, compensation can be increased where there has been a failure of the employer to give a written statement of employment particulars.
While an employer must set out such basic particulars in writing, it is often advantageous for the employer to have in place a more robust contract addressing issues such as dispute resolution, confidentiality, restrictive covenants, uniform and overtime. Such additional clauses can increase the flexibility of the employer and, when appropriately drafted, a comprehensive written contract of employment can avoid disputes in the workplace while acting as an effective management tool.
For further information on employment contracts or review of employment documentation, please do not hesitate to contact Seamus McGranaghan, John Finnegan or Shauna McAleese for further information.