The Art of Mastering Careers

Why Employment Contracts are Necessary

The relationship that exists between an employer and an employee is based on a law of contract, but unlike other types of agreement only some certain aspects of the contract of the employees are required to be in writing by the law. This has caused some disagreements, and this is why we have the tribunal claims. It is a common practice for both the employer and the employee to enter into a signed contract so that they can each understand the terms and the conditions that both parties have to abide with. These agreements are usually put in writing by the employer incorporating the terms and both the employer and employee have to mutually agree with the standard form, or with the negotiated terms that exist between both parties. A verbal agreement between both the parties is not the best way as the terms of work and conditions can change with time and if it is a verbal agreement sometimes the changes cannot be captured.

The business operations and also the employee responsibilities can change with time. The changes might fail to be integrated into the verbal or even the written contract which leaves both the employer and the employee exposed to the uncertainty and legal exposures. When there is a written contract the terms of employment are clearly and unmistakably highlighted to ensure that both parties are quite aware and understand their main responsibilities, obligations and duties under the contract of agreement. Both the employer and the employee have to sign the contract so that it can be in operation. The contracts of employment also referred to as the common law contracts consists of the following.

It has the agreed terms between the employee and the employer. The terms that you have agreed on are included in the written contract.

The laws that are required by the law to be in employment contracts are also included. Some are the requirement that an employer should have and so they are included in the contract
so that the employee can abide by them.

An example is how the employees are supposed to act in good faith, and the employers have confidence and trust the employees. All the terms are well highlighted in the agreement contract.

Employers are supposed to give the contracts to their employees. The statement can be contained in more than one document, and it highlights the following information, the business address, and name, the employees name, the job description and title of the work they will be doing and the commencement date.

The payment terms are noted down. If an employee is to go for public holidays, the information is captured in the employment contract.
It includes where the employee will work, and whether he or she will have to travel for work assignments in other areas and if they are paid and also if the employee will work in different places and if yes where.