How I Draft the Contract of Employment-Step By Step

How I Draft the Contract of Employment-Step By Step


in this video I want to take a look at
how I draft the contract of employment for small business owners small
employers who contact me on a regular basis for conflicts so I’m going to take
you through my contract and the thought process and the important things that I
see in the contract a lot to be careful for or watch out for okay so we’ll start
here this is essentially my template conflict this is my starting point so
clearly the contract should be issued on the letterhead containing the name and
address of the employer at the outset then you’re going to
address your letter your challenging conditions letter to the employee and
you’re going to send it out and duplicate once you’re satisfied with it
and the employee is going to sign two copies and you’re going to take one copy
back and then both of you houses have a signed copy of the contract of
employment this contract will also keep your right in terms of your obligations
on to the terms of employment information Act of 1994 which is the
statutory obligation you must do this you must give employees a written
statement of certain terms and conditions of employment within two
months of starting the job so you obviously address your your letter your
terms and conditions letter to the employee and you set out here the name
of the the legal entity that is the employer so I could be a sole trader it
could be a partner it could be a limited company you need to be careful about
that they’re in this force for a paragraph there’s a line here at the end
which are two lines at the end which I would strongly recommend and you’ll see
here it says for the avoidance of doubt I’m gonna highlight this for the
avoidance of that these documents are not contractual and can be amended under
a place of claims time of the discretion of I’m referring there two copies of the
policies and procedures I need to start handbook will be given to the employee
under separate cover but I am stipulating that those documents the
staff handbook the relevant policies policies and procedures are not actually
part of the contract and are not contractual now have a separate business
or a separate video or other about whether the staff handbook should be
contractual or not take a look at it on youtube you’ll see why I don’t recommend
that it’s contractual and you can see why then I am stipulating here that for
the avoidance of doubt these documents that is the contract or the staff
handbook is not contractual and can’t be amended under or a place from time to
time so I’m saying here that this letter and bonney’s the entire agreement and
understanding between employer and employee so today for employment and
that’s going to be here if the employee has started already
you’re gonna put in the proper commencement date of the enjoyment if
the employee is going to start with you in the next week or month or so then
obviously put in the correct date as well now you’re going to have a clause
here I would strongly recommend it subjective science actually completion
of the probation period specified below that’s very very important I recommend
very strongly that you have a probation period of at least six months and that’s
extended but it should be extendable to eleven months that’s in relation to a
panel conflict you can also have a probation period in relation to a fixed
term conflict but there are two types of fixed term contracts one is for a
specific term for example six months or 12 months or two years or indeed five
years the other is what’s called a specific purpose contract this is a
contract for the specific purpose of doing something so a person could be
working in your business or in your school or whatever for the specific
purpose of covering for somebody on the maternity leave for example likewise you
could have a specific purpose conflict for the purpose of a particular
construction project or for a building project or for something of that nature
in other words it’s got a specific objective or a specific purpose at the
contract only lasts for as long as that purpose is there he could be as a say
maybe roadworks or building a big rage or something of that nature once the
object is satisfied and achieved the contract is at an end as I said is a
fixed term contract and that’s for a specific duration of time it could be
six months it could be six years so that’s what you need to put in there if
you are going for a fixed term contract one of those conflicts otherwise you’re
looking at a permanent contract provided the person passes the probation period
you’ll see here as well as something that’s important which is in my contract
that is a statement of the unfair decisions that will not apply to this
initial consisting only of the expiry of the term or assessor of the purpose
specified in this clause in other words if the contract is a fixed term contract
for 12 months the very fact that the 12 months comes
to an end means that the contract is over and it will not give rise to an
unfair dismissal claim in other words the contract has simply expired in
accordance with the terms okay the next thing then is your appointment is so you
could put in there a solicitor secretary receptionist retailer systems
support staff or whatever your job description is attached we show you the
job description there at the end essentially at the end you put in a job
description setting out the main bullet points I would suggest of the
responsibilities and tasks involved in the job the location clause you want to
stipulate or set set out exactly where the person is going to be locators and
you’re also going to have to stipulate if they are going to have to perform
their duties away from the premises from time to time so you know they may have a
job that will require some travel or they may have a job or you may want them
to travel to different branches of your business around Dublin around Leinster
or wherever it’s important or that you put the location in relation to the job
in the contract it’s also important that you put in a clause providing for
geographical flexibility in other words that you can be flexible or that the
employee will be flexible in love in relationship locations of work to meet
the needs of the business so that’s important location this is the
probationary period it’s one of the most important clauses I believe in a
contract employment especially every giving one to a person for the first
time I would recommend a six-month period and that should be extendable to
11 months and I would also recommend that it states quite clearly that during
the probation period the only notice the person employee is entitled to is one
weeks notice I have seen contracts where they forget about the probationary
period notice period and the contract itself will then have three months
notice and after a mortix clear if the employee
is not going to work out and then the employer is then stuck with the three
months nor his period even though the employee may only be there for a month
or two months or three months and even though the
terminators at during probation they have left out the provision for one
weeks notice in the probation period then they’re stuck with the general
notice period in the contract that could be a month or three months the hours
have worked and it’s set out here if it’s a retail business that’s important
to it’s an office obviously that’s important so you should set out the
opening hours of the business and you should also set out the situation in
relation to overtime he’s the person’s going to get paid a
normal rate for overtime are they going to get time and a half maybe double time
and or is to no overtime payable in respect of the position it may be a
salary job it may be you know sort of understood or certainly made clear for
the contract that over time will not be payable but you need to make that clear
at the outset because we don’t then in the event of a dispute ie a person has
the contract for 40 hours a week in their meet the end of doing an extra
hour – every day after a period of time you get very frustrated and disgruntled
and they would be looking to bring some sort of the claim perhaps for the extra
hour world in the normal course of events quite frankly they are title to
be paid for the work but if they’re on a salary and if the contract says you’re
not going to get paid for overtime well that’s fairly definitive
saturdaya rate of pay then should be included in your contract as well so you
should set out just you know how often they’re going to get paid whether it’s
weekly monthly it’s a etc and one thing you should put in if they are a retail
worker for example or on a relatively low wage you should print up a reference
page for the purpose of the minimum national minimum wage is this is
actually a requirement requirement in the contract of employment that you put
in at a reference period you also have a clause here you’ll see where the company
or the employer either reserves the right to deduct from your
wages on it so much due to it so you know this might include overpayment of
wages or something of that nature I knew leaved and that’s governed by the
organisation of working time I said 1997 however your employment may provide more
generous enjoyment or any relief provisions if
that’s the case it should be stipulated here one thing that you might not hear
is this except in special circumstances no more than ten days may be taken at
any one time so 10 days leave with essentially two weeks so a lot of
employers will it’s just that the employee chopping off more than two
weeks another thing that you may consider it’s a certain number of your
onion leaves it’s never taken or maybe designators states that you must take us
holidays when the office is closed during the Christmas and Easter holidays
you’ll be given notice of these days and events so if you’re the employer you
might want to consider this and just see if there are any particular dates that
enclose for example Good Friday or holidays Easter holidays at Christmas or
whatever if you want them to be designated as holiday dates where you
need to specify it and set it out there the situation in relation to paint
general is that there’s no obligation on the employer to provide a pension
however the employer should make provision for payment by the employee
into a PS or a this is a private pension situation for the employee so you should
make provision for allowed the employee facilitated payments into a PS PRSA of
their choice and you should give them a list of approved providers if they
request and you can get a list of approved PRSA providers online anywhere
now the okay locally if you are an employer who operates a pension well
then you just stipulate or set out here what’s the situation they are what are
entitled to what payments will be made etcetera censor retirement age I would
strongly recommend that you have a retirement age in a contract if that’s
going to be an issue for you you do need to specify it or set it out if you don’t
well then you’re going to have a situation where it may be very difficult
to get somebody who comes to a certain age and you want to for
intergenerational reasons etc promote younger people but if there’s no
retirement age of the contract will there
in Irish law at the moment is king stand-in on 28th of March of 2018
there’s no specified or particular retirement age unless you in the public
service or in a specific job provided in which the contract provides for a
retirement age illness then you should set out here what the situation is in
relation to illnesses you should sell out the reporting requirements etc such
now you may also have a start handbook and I would strongly recommend that you
have a hammer start handbook the staff handbook should specify in more detail
what the reporting requirements are in relation to illness how they report
etcetera etcetera and you should also set out if there is a sick paint scheme
what the situation is or how long it lasts for and so on and so forth or if
the reason the sick pay scheme you simply say that the company or the
employer does not operate a secret scheme and that is the legal position
you note you’re not obliged but some employers do maternity parental adopt
upon forcement you leave and there are other statutory leaves as well again
details of these should be set out in the start handbook so I would recommend
it to the staff handbook and that you sell outdoors leave arrangements and the
teittleman’s in the start handbook you should have a confidentiality clause as
well dealing with customers or clients of your business you know what any
information or details of those being disclosed to animals or any notes or
memoranda taken from the business you also may want to put into your contract
restrictive covenant restrictive covenant is something that stops
somebody from setting up a business in competition with yours only working in
the same industry within a second separate or a certain geographical
distance for a specified time for example six months after they leave you
if you have a nail bar or if you have a hairdressers or something you don’t want
somebody setting up two doors down the street after they’ve left you and
bringing you their clients with them you also don’t want them carrying out work
at home for example in their own house member in the garage or a converted shed
or something and they’re doing hair or to do it makeup or to do nails whatever
you need some protection for yourself now your restrictive covenant that is
your non-compete clause for when they leave the job must be reasonable so it
can’t be completely la-la in terms of stopping them from working for you know
twelve months over the entire region of Ireland because people have a
constitutional right here in a living but you also have a constitutional right
and a common law right to protect your business but it does have to be
reasonable as to time allows to geography what area you’re looking to
protect an important bunch of procedures will be those dealing with grievance
discipline bullying harassment sexual harassment etc again start handbook so
your three most important procedures grievance discipline and dignity at work
you also have a data protection clause here which stipulates that saying it by
saying this document you consent to the employer and maintaining personal data
about you or retaining it and this is getting much more strict with the
introduction of GDP or from a 2018 you cannot just rely on this simple signing
of a contract as consent you really need a more lawful basis for a consent from
the employee now you may well have that for example you do need to maintain
records of employees for the Revenue Commissioners for the Department of jobs
enterprise deployment and so on and so forth your statutory and legal
obligations but it’s not an offer will not be enough at GTB or GDP or comes in
from a 2018 to simply get the employee to sign this and this gives you free
rein to do what you like with the data that won’t be the case
this country’s notice this clause here deals with the notice period in relation
to the termination of employment what it set out here is the statutory situation
you may require however your employees to give you more notice you may require
fortnight or a month or three months or something of that nature and will depend
on the nature of the job pay or termination then that’s a relatively
straightforward sort of charge you title to pay calculator
once a week’s salary Fridays work since you last paid plus any accrued holiday
entitlements changes to your terms employment this is important however
it’s of limited value you are entitled to as an employer change the terms of
employment however those changes must be reasonable if they’re not reasonable
you do need to negotiate the changes which are probably get them to sign up
towards where you then we’ll ask the employee to sign here and you’ll get
give them two copies and get from the sign board copies new take one back and
they take one back and in the event of a dispute then both parties will know
exactly where you stand down here then it’s done description I would recommend
a number of bullet points 5 to 10 molar points selling out the main
responsibilities and duties associated with the law I hope you find this useful
if you do you might give with a thumbs up down below and if you need a contract
or staff handbook or whatever feel free to contact me and I’ll be able
to give you a quotation for a contract in the staff handbook contract on its
own without a staff handbook is I wouldn’t recommend I recommend getting
the staff handbook as well because a contract quite frankly it’s going to
refer to the policies and procedures in your staff handbook and if you don’t
have a staff handbook then your contract is going to look like the upper with
North laws as it were if you want to put all your policies and procedures in the
contract well then you’re going to have a huge unwieldy document and your
policies and procedures are also going to be crunched contractual you don’t
want that because you want to reserve the right to change them or add or
subtract as time goes on hope you find it useful given at the thumbs up down
below he knew thanks you

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