An employment contract is a legally binding agreement between an employer and an employee that outlines the terms and conditions of employment. There is no statutory requirement in T&T for an employment contract to be in writing. There are also no requirements governing the form of the employment contract or the terms that must be included. That said, from a practical perspective, having a written employment contract ensures that both the employer and employee clearly understand their respective rights and obligations. Careful consideration should be given to the terms of the employment contract as it provides an opportunity to clarify many important matters.
An employment contract should typically include and/or address the following:
• The legal name of the employer and the employee;
• The duration of the contract. Will it be for an indefinite period, or only short term? If it is only short term, is it tied to the completion of a particular project, or a fixed period of time?
• The employee’s job title;
• The employee’s duties and responsibilities. This can be set out in the body of the employment contract itself, or in a separate detailed job description that is referenced and/or attached to the employment contract. It may also be useful to set out who the employee will be expected to report to;
Whether employment is subject to a probationary period. If so, how long will that period be? Will the employer have the right to extend the probationary period?
The employee’s normal hours of work, whether they will be expected to work outside of those hours and whether or not they will be entitled to receive overtime pay for work outside of their normal working hours.
In T&T, employees earning more than 1.5 times the national minimum wage are not entitled to overtime pay unless this is expressly prescribed under their employment contract or, where applicable, a collective agreement;
The employee’s normal place of work. Where the employee may be required to work in different locations in T&T or to travel abroad as part of their duties and responsibilities, this should be set out in the employment contract. Where the employer allows working from home, it may be useful to set out the requirements for doing so in a separate policy or guideline, which can be referenced in the employment contract;
• The employees’ remuneration package including their base salary (which should be expressed to be subject to applicable taxes and statutory deductions) as well as any applicable benefits and bonuses:
• Side Activities: As a general principle, an employee is prohibited from acting in a manner that is inconsistent with his duties or functions, or which creates a conflict of interest. As such, an employer can validly prohibit an employee from doing ‘outside work’ during his working hours or from doing work in his spare time which competes or conflicts with the employer’s interests.
• Sick Leave: There are, save for certain industries in respect of which specific provision is made under minimum wages legislation, no statutory provisions governing sick leave for private sector employees in T&T. As such, it is useful for the employment contract to expressly set out how many paid sick days the employee will be entitled to per year, as well as other related terms such as whether and/or in what circumstances the employee will be required to submit medical sick leave certificates and whether the employee will be required to notify the employee of their absence by any particular time. As a general rule sick leave does not “roll over” if unused, but to avoid any confusion or misunderstanding it may be useful to expressly set this out in the employment contract.
• Vacation Leave: There are, save for certain industries in respect of which specific provision is made under minimum wages legislation, no statutory provisions governing vacation leave for private sector employees in T&T. As such, it is useful for the employment contract to expressly set out how many paid vacation days the employee will be entitled to per year, as well as other related terms such as eligibility requirements (it is typical for employees to become entitled to vacation leave only after completing an agreed period of service, usually one year) and whether and/or to what extent unused vacation will be allowed to “roll over” or must be utilised in the year in which the entitlement arises.
• Termination and Resignation: As a general rule, termination “at will” is not recognised in Trinidad and Tobago. The employment contract can (and should) include a clause specifically addressing termination, including termination by notice and termination for cause. However, it should be borne in mind that these contractual provisions will not be conclusive. Termination will also be subject to the requirements of the common law and good industrial relations practice.
• Any applicable company policies. The employer should also ensure that the employee is provided with copies of these policies or a reliable way of accessing them electronically;
• The employee’s duty of confidentiality.
• Where applicable, non-solicitation and/or non-compete clauses. Note that where those clauses are expressed to extend after employment ceases, they may be considered void as unlawful restraints of trade unless (i) the employer has legitimate business interests to protect and (ii) the activities prohibited are no wider than necessary to protect the legitimate business interest; and
• Any other matters relevant to employment with that particular employer.
The employer and employee are generally free to contract at will and may negotiate and agree on the terms of the employment contract.
However, it is important to note that common law, statue and the requirements of “good industrial relations practice” impose duties, obligations and requirements on employers in addition to those that may be expressly included in the employment contract.
It is important for employers to be aware of these duties, obligations and requirements, as, even where an employer acts in accordance with the express provisions of the employment contract, its actions may be open to challenge on the grounds that it has breached same.
Outlining all of these requirements is beyond the scope of this Article. However, for more information see our previous article on employment law FAQs published in the September 4, 2023 edition of this newspaper.