What is the best thing to do with regards to introducing contracts to a medium sized business that had no contracts of employment in place for its employees, some of which have been in employment with that Company for over 10 years? What happens if an employee refuses to sign the contract of employment?

Under the Terms of Employment (Information) Act 1994, employers are obliged to provide their employees with certain written information in relation to their terms and conditions of employment not later than two months after the commencement of employment. If an employee were to bring a claim for breach of the 1994 Act, the Rights Commissioner could award such compensation as is considered reasonable but not exceeding four weeks’ remuneration. In practice, such claims tend to be initiated following termination of employment and not during, although there is nothing to prevent a claim being brought during employment.

Arguably, in respect of individuals who were already employees when the 1994