Home 5 Employment and Payroll 5 Types of Employment Contract

Types of Employment Contracts in Ireland

Understanding the different types of employment contracts is essential for both employers and employees in Ireland. Each type defines the legal relationship, rights, and obligations between the employer and the employee under Irish employment law.

Permanent Employment Contracts

Permanent contracts, also known as full-time or open-ended contracts, are the most common type of employment agreement in Ireland. Key features include:

  • Continuous employment with no predetermined end date.
  • Regular working hours and salary.
  • Full entitlement to statutory rights, including paid leave, public holidays, sick leave, and redundancy rights.
  • Obligations to provide minimum notice periods in case of termination.

Fixed-Term Contracts

Fixed-term contracts are temporary agreements that last for a specific period or until the completion of a particular task or project. Key features include:

  • A defined start and end date or project completion criteria.
  • Equal rights and benefits to permanent employees during the contract period.
  • Legal protection under the Protection of Employees (Fixed-Term Work) Act 2003, including:
    • Conversion to permanent status after four years of continuous fixed-term contracts unless there are objective grounds for renewal.

Zero-Hour and If-and-When Contracts

Zero-hour contracts are restricted in Ireland under the Employment (Miscellaneous Provisions) Act 2018. However, if-and-when contracts remain permissible. Key features include:

  • No guaranteed working hours; employees are only paid for the hours worked.
  • Flexibility for both employers and employees to agree to work based on availability.
  • Legal protections, including a requirement for employers to provide core terms of employment within five days.

Part-Time Contracts

Part-time contracts apply to employees working fewer hours than a full-time employee. Key features include:

  • Entitlement to the same rights as full-time employees, such as paid leave and public holidays, calculated on a pro-rata basis.
  • Legal protection under the Protection of Employees (Part-Time Work) Act 2001, ensuring non-discrimination based on working hours.

Consultancy Agreements

Consultancy agreements are contracts for services between companies and independent contractors or consultants. Key features include:

  • Consultants are considered self-employed and are responsible for their own taxes and insurance contributions.
  • Payment is based on agreed deliverables, milestones, or fees.
  • Consultants are not entitled to employee benefits, such as paid leave, pensions, or redundancy.

Agency Worker Contracts

Agency workers are employed by recruitment agencies but are placed to work temporarily with client companies. Key features include:

  • Equal treatment to directly hired employees in terms of pay, working conditions, and holidays under the Protection of Employees (Temporary Agency Work) Act 2012.
  • Entitlement to the same working conditions as permanent staff after 12 weeks of continuous employment with the same client.

Why Seek Professional Assistance?

Navigating employment contracts in Ireland requires compliance with a variety of legal requirements, including:

  • Statutory rights and entitlements for all employees.
  • Anti-discrimination laws and fair working conditions.
  • Specific terms that align with Irish employment law.

Get in Touch

Whether you’re an employer drafting contracts or an employee reviewing terms, our experts can provide tailored advice to ensure compliance and clarity. Contact us today for professional support with employment contracts in Ireland.

CONTACT US