In Guernsey, although there are no specific types of employment agreements prescribed by law, the Conditions of Employment (Guernsey) Law, 1985, mandates that all employees receive a written statement of their main terms and conditions of employment. This written statement forms the basis of the employment agreement.

Contract Term

Employment agreements can be categorized based on their term:

• Fixed-term contracts: These contracts have a specified start and end date for the employment.
• Indefinite contracts: Also known as contracts of indefinite duration, these contracts have no set end date and continue until either party terminates them, following the proper notice periods as outlined in the Employment Protection (Guernsey) Law, 1998.

Working Hours

The working hours can be full-time or part-time:

• Full-time: A full-time workweek is not defined by law, but it's typically understood as 40 hours per week.
• Part-time: The written statement should clearly define the agreed-upon part-time work schedule.

Remuneration

The written statement must include details on salary or wages, including pay frequency. The Minimum Wage (Guernsey) Law, 2009, outlines the minimum wage requirements.

Benefits

While Guernsey law doesn't mandate specific benefits, the written statement should outline any benefits offered by the employer, such as paid leave, health insurance, or pension contributions.

Notice Periods

The notice periods for termination of employment are outlined in the Employment Protection Law.

Additional Terms

Additional terms such as confidentiality agreements and intellectual property ownership can also be included in the employment agreement. This is not an exhaustive list, and additional terms specific to the role or industry can be included in the employment agreement.

Employers in Guernsey are required by law to provide a written statement of the main terms and conditions of employment to all employees within four weeks of their start date. This statement can be further elaborated upon in a formal employment agreement.

Essential Clauses in Employment Agreements

Basic Employment Details

• Parties to the Agreement: The employer and employee should be clearly identified by name and title.
• Start Date and Job Title: The date employment commences and the employee's job title should be specified.

Compensation and Benefits

• Remuneration: The employee's salary or wages should be outlined, including calculation methods and pay frequency.
• Benefits: Any benefits offered, such as health insurance, pension contributions, or paid time off, should be detailed.
• Working Hours: The employee's normal working hours and any provisions for overtime pay should be defined.

Termination and Notice Periods

• Notice Periods: The notice period required by both the employer and employee to terminate the contract should be specified.
• Termination Clauses: The grounds for termination by either party should be outlined, following Guernsey's anti-discrimination legislation.

Leave Entitlements

• Annual Leave: The employee's annual leave entitlement and accrual process should be detailed, ensuring compliance with Guernsey's minimum standards.
• Sick Leave: The employee's sick leave policy should be outlined, including eligibility and sick pay provisions.
• Parental Leave: Entitlements related to maternity leave, adoption leave, and parental support leave should be addressed, adhering to relevant Guernsey Ordinances.

Confidentiality

• Confidentiality: A clause protecting the employer's confidential information and restricting the employee's use of it after termination should be included.

Additional Considerations

• Guernsey Law: The agreement should state that it is governed by and construed following Guernsey law.
• Dispute Resolution: The process for resolving any disputes arising from the agreement should be outlined.

Probationary periods are a common feature in Guernsey employment contracts. They serve as a trial period for both the employer and the employee to assess suitability for the role.

Legality and Flexibility

In Guernsey, there is no statutory minimum for a probationary period as per the Employment Protection (Guernsey) Law, 1998. This gives employers the freedom to determine a suitable length for the probationary period in their contracts.

Common Practices

The length of probationary periods can vary depending on the position, industry, and complexity of the role. Typically, they range from a few weeks to several months.

Notice Periods During Probation

Probationary clauses often allow for termination with shorter notice periods compared to those after the probation ends. However, minimum statutory notice periods as outlined in the Employment Protection (Guernsey) Law, 1998 still apply.

Unfair Dismissal Rights

Employees dismissed during probation generally don't have recourse for unfair dismissal unless the reason falls under the category of "automatically unfair" reasons, such as discrimination.

Key Points for Employers

Employers should clearly define expectations, performance benchmarks, and the duration of the probationary period within the employment contract. It's also important to provide adequate support and opportunities for the employee to succeed during the probation period.

Employment agreements in Guernsey often include confidentiality and non-compete clauses to protect an employer's legitimate business interests. However, these clauses need to be carefully drafted and balanced against the employee's right to work.

Confidentiality Clauses

Confidentiality clauses are designed to protect an employer's confidential information, such as trade secrets, client lists, and business strategies. These clauses typically prohibit employees from disclosing or using such information without authorization, even after their employment ends.

Guernsey courts generally uphold confidentiality clauses as long as they are reasonable in scope and duration. The employer has the burden of proving that the information protected is genuinely confidential and that the restrictions are necessary to protect its legitimate interests.

Non-Compete Clauses

Non-compete clauses prevent employees from working for a competitor or in a similar role for a certain period after their employment ends. These clauses are viewed more restrictively by Guernsey courts compared to confidentiality clauses.

For a non-compete clause to be enforceable, it must be reasonable in scope and protect a legitimate business interest. The clause should be geographically and temporally limited to protect the employer's legitimate interests without unduly restricting the employee's ability to find new work. The employer needs to demonstrate a legitimate interest that justifies the restriction, such as protecting trade secrets or client relationships.

Recent Case Examples

The case of Quilter Private Client Advisers v Falconer (2020) underscores the importance of drafting clear and reasonable restrictive covenants. In this case, a Guernsey court dismissed a non-compete clause that sought to prevent an employee from working for a competitor for nine months after leaving during her probationary period. The court found the clause to be too broad, particularly given the short probationary period.

Key Points

Confidentiality clauses are generally enforceable in Guernsey employment agreements, provided they are reasonable. Non-compete clauses are subject to stricter scrutiny and must be carefully drafted to be enforceable. Employers should consider the specific circumstances and seek legal advice when drafting confidentiality and non-compete clauses.