The Art of Mastering Careers

Why Employment Contracts are Necessary

The relationship that exists between the person employed and the employer is contained in a contract. 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 supposed to be in writing and have to incorporate the terms that both the employer and the employee have to work and abide with. 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. The contract of employment enables both the employer and the employee to understand the terms and the conditions that they have to abide by so that they can create a conducive working environment. Both the employer and the employee have to sign the contract so that it can be in operation. The contracts of employment are referred to as the common law employment.

It includes the terms and conditions that have been agreed on between the employee and the employer that they both have to abide with so that they can work smoothly. The terms that you have agreed on are included in the written contract.

Also the terms and condition that are established by custom and practice are included. An example is when the employee is working as a driver, where the contract highlights that he must have a valid driving license for the class of vehicle the employee will be driving.

There are also other terms which might seem obvious when mentioned. 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. 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.