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10 I Why Ireland? A guide to doing business in Ireland I ByrneWallaceLabourTHE IRISH EMPLOYMENTENVIRONMENTEmployment law in Ireland is acombination of Irish and EU legislationcomplimented by common lawjurisprudence and Irish Constitutionallaw. Parties to an employmentrelationship are free to negotiateand conclude agreements betweenthemselves, subject to compliance withcertain minimum requirements as setby law.THE EMPLOYMENTRELATIONSHIP IN IRELANDThe employment relationship may bebroken down into three distinct stages,each involving its own specific legalissues, as follows;Pre-EmploymentPotential employers must ensure toexercise care from the outset of theemployment relationship, beginningwith advertising and recruitment.The most common pitfall in this arearelates to non-compliance with equalitylegislation. Employers must ensure thatall processes involved in the recruitmentprocess, including advertising, interviewand selection, are transparent and fullycompliant with equality legislation.Where possible, interview panelsmust contain a gender balance,questions should be appropriate andcontemporaneous notes must be takenoutlining the reasons why a candidateis ultimately successful or unsuccessful.In addition, caution must be exercisedin the drafting of advertisements asthey may subsequently be found tohave formed part of the employmentcontract.Regulation of the EmploymentRelationshipContracts of Employment:Employers are obliged by law toprovide employees with a writtenstatement of specific terms of theiremployment within two months of thecommencement of the employment.While this may be regarded as beingthe irreducible minimum in terms ofrequired documentation, the realityis that the employment relationshipwill generally be governed by a moreexpansive contract of employment.This contract will include both expressterms and implied terms. Implied termscover rights and obligations which areimposed on the contracting parties;(a) by common law and which havebeen found by the Courts to applyto every contract (e.g. the duty ofmutual trust and confidence);(b) by Statute (e.g. minimum noticeperiods);(c) by the Irish Constitution (e.g. theright to join a trade union);(d) by collective agreements (e.g.levels of overtime for a specificclass of workers as negotiated by arecognised trade union); and(e) by custom and practice in aparticular workplace (i.e. the practiceof awarding a bonus on meetingtargets notwithstanding that thereis no contractual right to a bonus).Implied terms are automaticallyincorporated into an employee’scontract of employment, regardlessof whether or not they are expresslyincluded.Minimum Requirements:Irish law provides for a minimum wage,minimum notice period, maximumworking time allowances and minimumannual leave entitlement of 20 days ayear (with an additional entitlement to9 public holidays a year). In addition,employees are entitled to a variety ofother forms of leave, albeit on an unpaidbasis, including maternity leave, parentalleave, adoptive leave, carer’s leave, forcemajeure leave and health and safetyleave. There is no entitlement to paidsick leave under Irish law.Policies and Procedures:In addition to the written statement/contract, an employer is obliged toput various policies and proceduresin place, such as grievance anddisciplinary procedures. Such policiesmust be drafted carefully in order toensure that they encompass fairness,transparency and the principles of naturaljustice. Such policies must be givento the employee within 28 days of thecommencement of employment.Health and Safety:Finally, under health and safetylegislation, employers are obligedto prepare a report confirming howthey intend to safeguard the health,safety and welfare of its employeesin the workplace (known as a ‘safetystatement’). This statement should coverissues such as victimisation, bullying andstress in the workplace.Pensions and Benefits:In terms of pensions, employers who donot provide access to an occupationalpension scheme for their employeeswithin six months of the commencementof employment are obliged toprovide access to a Standard PersonalRetirement Savings Account and tofacilitate employee participation therein