Short Course on Options – Covering The Basics

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. If the terms and the conditions of a contract of the contract are not followed the person who has breached the agreement is taken to a tribunal court to answer to some charges. The practice of the employer and the employee signing a contract of agreement is a most common practice. The employee and the employer has to be in a written agreement, and both have to sign the contract. The employers and the employees should enter into a written contract so that in a case of any changes in the working conditions, the contract can be amended and incorporated into the contract.

The operations of businesses can change, and if this happens, the information has to be captured into the contract. 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. 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. There are also other terms which are necessary to make the contract work.

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 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.