A recent case decision by the EAT has shown the importance of an employee being issued with a contract of employment and employee handbook.
Aside from the legal obligation to issue an employee with a contract of employment within 8 weeks of employment, and to issue an employee with their Disciplinary and Grievance procedures within 28 days, the practical implications are just as important.
What does a contract of employment entail?
From an employers point of view, the contract of employment and employee handbook detail the terms and conditions of employment as well as the policies and procedures of the business. To rely on any policies, an employer must ensure the employee has received and understood these documents. this is especially true with issues of misconduct where an employee must be aware that an issue is considered to be gross misconduct if an employer is to enforce any such policy.
Case example
In the case of Elaine O'Sullivan -v- O'Donnell & Jenkins UD1513/2010 the tribunal noted that it was "of mutual benefit" to issue these terms to an employee as it gives a reference point in the employment relationship. The tribunal added that the absence of such a document is "a recipe for misunderstandings and indeed disputes".
This case highlights just how fundamental it is for an employer to have issued employees with a clear set of documentation that detailed what's expected of them in their role and what standards are to be adhered to. Without this, there is an air of ambiguity in the employment relationship which leave matters open to misunderstanding and as the tribunal noted, disputes.
Section 3 of the Terms of Employment (Information) Act 1994 details the items required in a contract of employment. The employee handbook should detail additional policies the employer would like employees to adhere to, such as Standard Operating Procedures (SOPs), dress codes, annual leave, and absence reporting etc.
The employee in the above case was awarded €12,290.98 as compensation for unfair dismissal as they were told to leave the workplace for no good reason. This, the tribunal reasoned, is enough for an employee to consider themselves dismissed, and it was reasonable to think they had lost their job.
Need our help?
For advice on issuing a contract of employment or employee handbook, our advisors are ready to take your call any time day or night on 0818 923 923.
