Purpose of an employment contract

What is an employment contract? Why is an employment contract better? The Purpose The purpose of an employment contract is to ensure that both you and your employer have a clear understanding of what is expected during the term of employment. This document can also serve to eliminate any disputes which may arise at a later date.

It also helps you to understand what your rights are under the law. All employees have an employment contract with their employer. It covers all of the terms of the new.

That is why an employment contract is much better for both employers and employees. See below for what should be included. Articles by Category.

Previously agency workers could agree a contract which would remove their right to equal pay with permanent counterparts after weeks working at the same assignment. Many companies do not require their employees to sign a contract. Instea they require employees to sign what is dubbed a “Non-Compete.

An employment contract defines the rights and responsibilities between two parties, naming one the “Employer” and the other the “Employee. As a matter of principle a contract of employment should always be in writing. Employment contracts consist of a mixture of express and implied terms. Oral agreements are.

It includes a number of terms which, whether written down or not, are legally binding – the employer’s duty to pay the employee wages, for example. Non-disclosure agreements An employer might use a non-disclosure agreement (NDA) to stop an employee or worker sharing information. Abundance of work:. This is another advantage of working on contract -based employment.

The employees do not have to. Higher gross salary:. Can a contract provide for less than the legal minimums? A contract can be in writing or verbal.

For example, employment law is also part of an employee’s contract but usually the law will not be written in full in the document. Find out more about written terms. When the employment contract begins. The contract might begin even earlier if.

For the employee a contract gives them the security that they are working for a professional business that has clearly defined its obligations and agreement on all terms of employment. For the employer they have the security that the employee is fully aware of their obligations and has agreed to comply with the stated terms. However, as an employer you also need a set of policies complying with the Acas Code on grievance and disciplinary procedures.

Your right to written details about your employment contract. The statement should describe the main terms of the contract of employment. NATURE OF EMPLOYMENT CONTRACT Contract of employment like every other contract is an agreement between and employer and an employee which describes and states the condition of employment. It is always advisable for one to be sure of what the contract states before signing and accepting the contract as once signed it is binding on both parties. Contract law and the terms of the contract of employment are at the heart of individual employee relations.

In addition, employers’ handbooks or staff manuals, which as a minimum comply with the Acas Code of Practice on grievance and disciplinary procedures , are important. Most statutory rights can only be enforced in a tribunal.