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. 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. When changes occur in a business place, the employer and the employee has to ensure that the changes are captured in the written contract and then both parties to sign. 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. The contract starts to work immediately it is signed by both parties. The contracts of employment also referred to as the common law contracts consists of the following.
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. There are terms and conditions which are set by legislation, which includes the national minimum wage and the minimum number of the paid holidays that the employee is entitled to in each year and all this is included in the contract of employment.
Also the terms and condition that are established by custom and practice are 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 are also other terms which might seem obvious when mentioned. The contract terms are well highlighted in the contract for both parties to understand.
There has to be a written contract between the employer and the employee before the employer starts to work for the employee. 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.