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The lowdown on employment contracts: Part 1

Last update - Tuesday, October 15, 2013, 16:07 By Innocent Chuzwueki

Know Your Rights with Innocent Chuzwueki

Many migrant business owners and Irish entrepreneurs were joined by representatives from many different organisations at the recent Afro-Business Connect Trade Show, supported by Metro Éireann and held as part of the National Igbo Convention in Dublin. I was highly impressed by the number of migrant business owners and employers who participated in the trade show, and it has prompted me to highlight and discuss issues that may be of great importance to entrepreneurs. The first of these issues I want to tackle regards employment contracts.

The relationship between an employer and employee is one that finds its roots in contract law, and therefore for a contract of employment to be valid, there must be an offer, an acceptance and consideration.

Generally, there is no prerequisite under Irish law that employment contracts be entirely or even partially in writing; the only exceptions to this are contracts for the employment of merchant seamen under the Merchant Shipping Act 1894 and articles of apprenticeship.

An employment contract may therefore exist even in the absence of any written document, once an employee has agreed to work for an employer and the latter has agreed to pay regular wage to the former for the work done. However, wise employers and employees usually state in writing the terms and conditions governing their employment relationship. Articulating employment contracts in writing helps the employer and employee to know their rights, duties and obligations. This will not only reduce the risk of claims by employees, but also enhance the work environment and create a more harmonious work relationship.

It is important when drafting employment contracts to use plain and unambiguous language. Employers usually draft employment contracts and should therefore be aware of the ‘contra preferentem’ rule, which states that where there is any doubt about the meaning of the contract, the words will be interpreted against the party who drafted them. For example if a mobility clause provides that the employer reserves the right to transfer the employee to any location in ‘Ireland’, the employer should be aware that this clause may be construed against him, should he seek to relocate the employee to Derry – which of course is both on the island of Ireland, and located across the national border in the United Kingdom.

Whether an employment contract is in writing or otherwise, it is made up of express and implied terms. But the Terms of Employment (Information) Act 1994-2001 stipulates that certain fundamental terms and conditions of employment signed by the employer must be given in writing to the employee within two months after the latter has commenced work.

 

To be continued...

 

Innocent Okey Chukwuezi is a qualified solicitor of the Law Societies of Ireland, England and Wales. He was called to the Nigerian bar in October 1987, and holds a BL degree from the University of Nigeria Nsukka and a Master’s in Commercial Law from University College Dublin.


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