What I Can Teach You About Options

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. We also have tribunal courts that will look into cases that occur as a result of the contracts being followed. The practice of the employer and the employee signing a contract of agreement is a most common practice. 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. When this happens and there is no written contract, there might be an oversight of these changes, but when there is a written contract this information has to be incorporated into the contract. When an employment contract is signed by both parties the terms of employment are well highlighted to ensure that both the employer and the employee understands the terms that both have to abide by. This contract is in operation from the time is signed, or the employment commences, until there are some amendments, or the contract is terminated. 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 and conditions that are negotiated through the corrective agreement are included in the agreement contract.

There are employment laws that are supposed by law to be included in the contract agreement, these 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.

There should be a mutual working understanding between the employee and the employer. All the terms are well highlighted in the agreement contract.

The employers have to give a written statement to their employee who is a legal requirement highlighting certain particulars of the employment. The contract document contains information like the business address, the Business name, a name of the employee, the job description, work title and other information.

The payment terms are noted down. It should also include if the employee is entitled to holiday entitlement, and this includes the public holidays.
If an employee will at some point be required to travel somewhere for employment this is captured in the contract and also the nrservice they are to offer to the employer.