At Bloom Consultancy, we work with businesses across Ireland to improve HR compliance and operational efficiency. One of the most crucial, yet often overlooked aspects of business compliance is ensuring every employee has a legally compliant contract of employment.

Whether you’re running a small café, a construction firm, or a growing tech company, having contracts in place is not just a legal requirement it’s also a smart financial decision.

1. It’s the Law

Under the Employment (Miscellaneous Provisions) Act 2018, all employees in Ireland must receive written terms of employment within five days of starting work. Failing to do so can lead to WRC (Workplace Relations Commission) inspections, fines, or legal claims. A clear, signed contract helps protect your business and demonstrates your commitment to lawful employment practices.

2. Reduces Risk of Disputes and Claims

Many workplace disputes stem from unclear expectations around pay, hours, job duties, or notice periods. A properly drafted employment contract outlines these terms in black and white. This not only helps prevent misunderstandings but can also serve as a vital piece of evidence if a claim is made to the WRC or Labour Court, potentially saving you thousands in legal fees or compensation.

3. Saves Money in the Long Term

Although creating contracts may seem like an administrative burden at first, the cost of not having them is far greater. Without formal agreements:

• You may face higher staff turnover due to unclear terms.
• Unfair dismissal claims can lead to awards of up to two years’ salary.
• Penalties for non-compliance can cost up to €5,000 per breach.

Contracts provide clarity and consistency, helping to retain staff and avoid unnecessary legal battles.

4. Defines Employer and Employee Responsibilities

A well-written contract doesn’t just protect you, it also helps employees understand their rights and responsibilities. This contributes to a more structured, transparent work environment and supports better performance management and accountability.

5. Supports Business Growth and Professionalism

As your company grows, having employment contracts in place allows you to standardise your HR practices. This makes onboarding smoother, promotes fairness, and presents your company as a professional, compliant, and trustworthy employer.

Let Us Help You Get It Right

At Bloom Consultancy, we specialise in creating custom employment contracts tailored to Irish law and your business needs. Whether you’re hiring your first employee or reviewing existing documents, we’re here to help you stay compliant, avoid risk, and save money in the long run.