29 May Contracts of Employment & On The Spot Fines

A quick reminder of some key requirements that employers need to be aware of when issuing contracts of employment, based on the Transparent & Predictable Working Conditions legislation that is now in place, with older contracts in use often being out of date and not compliant.

In addition, WRC Inspectors have the authority to apply on the spot fines for failure to issue terms and conditions of employment in writing on time as well as for not providing information related to wages and deductions.

Confirmation of Terms & Conditions of Employment

Employees must receive information in relation to the following within 5 days of commencement of employment:

–remuneration including basic rate of pay and any additional payments,

–the place of work and where there is no specific fixed place of work a statement setting out that the employee is employed at various places or is free to determine his/her own place of work,

–the title or grade of the work or a brief description of the work,

–the commencement date of the contract,

-duration of and conditions relating to the probationary period and

-any terms and conditions relating to hours of work including overtime

Thereafter, employees must now receive their full written contract of employment within one month from commencement of employment. The contract of employment must now include training entitlements, paid leave entitlements, procedures to be observed on termination, any applicable collective agreements and for agency workers the identity of the end user.

Probationary Periods

Probationary periods in contracts of employment must not exceed 6 months and can only be extended in exceptional circumstances such as an employee being on extended sick leave during the probationary period.

Exclusive Service

Exclusive service clauses in contracts of employment are now prohibited except where it is proportionate to do so and the requirement can be objectively justified on particular grounds such as health and safety, protection of business confidentiality and avoidance of conflicts of interest.

Variable Patterns of Work

Employees who do not work a fixed work pattern must now be informed that their work schedule is variable, and the contract must set out the number of guaranteed paid hours and the remuneration for hours worked in addition to the guaranteed hours, the hours and days the employees may be required to work and the minimum notice period the employee is entitled to before the start of a work assignment.  These employees also have a right to request a form of employment with more secure working conditions after they have successfully completed six months of service. The employer must provide the employee with a reasoned reply to the request within one month.

Overseas Working

Employees posted overseas must now receive information regarding remuneration in accordance with local law entitlements, arrangements for expenses and a link to an official EU website which sets out the terms and conditions that apply to workers posted abroad.

Fines

Employers also need to be aware as well that the Workplace Relations Act 2015 ( Fixed Payment Notice) regulations 2023, also introduced a series of on the spot fines called fixed payment notices for failing to comply with certain aspects of employment law, including:

€1,500 if an employer fails to provide an employee with their terms of employment within one month of commencement, or provides false and misleading information to the employee.

€1,500 where an employer fails to provide an employee with a written statement of wages and nature and amount of any deductions

€1,500 where an employer does not provide an employee with a statement of their average houlry rate of pay for a pay reference period, on request from the employee.

These fines are in addtion to other potentiual compensation that may be awarded to employees who pursue cases through the WRC.