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Saint Helena, Ascension and Tristan da Cunha

Employment Agreement Essentials

Understand the key elements of employment contracts in Saint Helena, Ascension and Tristan da Cunha

Types of employment agreements

In the Overseas Territory of Saint Helena, Ascension and Tristan da Cunha, the legal framework for employment contracts combines British common law principles with local ordinances. The specific type of agreement depends on the nature of the employment.

Written Employment Contracts

Written employment contracts are formal agreements outlining the terms and conditions of employment. They are most common for full-time, permanent positions. These contracts typically include details like job title and duties, remuneration, working hours, leave entitlements, and termination clauses, as per the Employment Rights Ordinance, 2010 (No. 9 of 2010).

Verbal Agreements

Verbal agreements, while less common, can be valid, especially for casual or part-time positions. However, these can be less secure for employees in case of disputes, as there's no written record of the terms.

Collective Bargaining Agreements

Collective bargaining agreements are negotiated between a trade union representing a group of employees and the employer. They set out terms and conditions that apply to all employees covered by the agreement. The presence of trade unions is not as widespread in Saint Helena, Ascension and Tristan da Cunha compared to other countries.

Public Service Regulations

Government employees typically have their employment relationship governed by a separate set of regulations modeled on good employment practices in the United Kingdom, as per the ST HELENA, ASCENSION AND TRISTAN DA CUNHA REVISED EDITION OF THE LAWS, 2017 JUDGMENTS OF THE ST HELENA SUPREME COURT AND COURT OF APPEAL.

Important Considerations

It's crucial for employees to understand their employment agreement, regardless of type. The Employment Rights Ordinance, 2010 (No. 9 of 2010) sets out minimum standards for employment contracts, including working hours, minimum wage, and leave entitlements. In the absence of a written contract, the Employment Rights Ordinance still provides baseline protection for employees.

Essential clauses

An employment agreement in Saint Helena, Ascension and Tristan da Cunha should include essential clauses that protect both employers and employees by clearly outlining expectations and responsibilities.

Basic Information

The agreement should include the full names of both parties entering the agreement and clearly outline the employee's job title, duties, and responsibilities.

Remuneration and Benefits

The agreement should specify the amount of regular compensation, including details on payment frequency and any allowances. It should also outline the terms for overtime pay, including calculation methods and rates. Any benefits offered, such as health insurance, pension plans, or paid time off, should be detailed.

Working Hours and Leave

The agreement should specify the standard working hours per week or day, including break times. It should also outline the employee's entitlement to annual leave, sick leave, and other forms of leave, following the minimum standards set out in the Employment Rights Ordinance.

Termination

The agreement should address the grounds for termination by either party, following principles of fairness and due process. It's advisable to include notice periods required for termination. Any severance pay entitlements in case of termination should be specified.

Confidentiality and Intellectual Property

If the role involves access to sensitive information, a clause protecting confidentiality can be included. The agreement should also clarify ownership of any intellectual property created by the employee during the course of employment.

Dispute Resolution

The agreement should outline a clear procedure for addressing workplace grievances and disputes.

While these clauses provide a solid foundation, it's important to consider incorporating additional elements depending on the specific role and industry. Consulting with a legal professional can ensure your employment agreement is comprehensive and adheres to best practices in Saint Helena, Ascension and Tristan da Cunha.

Probationary period

In Saint Helena, Ascension and Tristan da Cunha, probationary periods are a common feature in employment agreements. This initial period allows both employers and employees to assess suitability for the role.

Evaluation and Trial Period

During the probationary period, employers have the opportunity to evaluate an employee's skills, performance, and fit within the company culture. Simultaneously, employees can use this time to determine if the role aligns with their expectations and skillset.

Legality and Duration

There's no statutory requirement for probationary periods in these territories. However, common law principles are applied. The probationary period should be reasonable in length, typically ranging from 3 to 6 months. Unreasonably long periods could be challenged as unfair.

Terms and Conditions

The terms and conditions of the probationary period, including its duration and expectations, should be clearly outlined within the employment agreement.

Termination During Probation

During the probationary period, dismissal is generally easier for employers as long as it's not discriminatory and follows a fair procedure. They typically don't need to provide a reason for termination. However, employees still have basic rights during probation, including those outlined in the Employment Rights Ordinance (2010) such as minimum wage and protection from discrimination.

End of Probation

Successful completion of probation typically leads to confirmation of employment, with full rights and benefits as outlined in the main employment agreement.

Important Considerations

Probationary periods should be implemented fairly and transparently, with clear expectations communicated to the employee. The probationary period is an ideal time for regular performance reviews and feedback to guide the employee towards success.

Confidentiality and non compete clauses

Employment agreements in Saint Helena, Ascension and Tristan da Cunha often include clauses to safeguard confidential business information and limit competition after the termination of employment.

Confidentiality Clauses

Confidentiality clauses are designed to protect an employer's sensitive business information, such as trade secrets, customer lists, or marketing strategies. These clauses outline the employee's obligations regarding maintaining confidentiality during and after employment. This may include restrictions on using or disclosing confidential information without authorization.

Confidentiality clauses are upheld based on common law principles of good faith and the implied duty of fidelity. For enforceability, the clause should clearly define what constitutes confidential information and the limitations placed on the employee.

Non-Compete Clauses

Non-compete clauses restrict an employee's ability to work for a competitor or engage in similar activities for a certain period after leaving the company.

Non-compete clauses are subject to greater scrutiny by courts in Saint Helena, Ascension and Tristan da Cunha compared to confidentiality clauses. To be enforceable, a non-compete clause must be considered reasonable in terms of its geographic scope, duration, and the specific role of the employee. Clauses that unduly restrict an employee's ability to earn a living are unlikely to be upheld.

Key Points to Remember

Confidentiality clauses are generally more enforceable than non-compete clauses in Saint Helena, Ascension and Tristan da Cunha. The focus should be on protecting legitimate business interests through clearly defined confidentiality clauses. Non-compete clauses should be narrowly tailored to avoid unreasonable restrictions on employee mobility.

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