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Why Employment Contracts are Necessary

The relationship that exists between the person employed and the employer is contained in a contract. 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. The employee and the employer has to be in a written agreement, and both have to sign the contract. 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 operations of businesses can change, and if this happens, the information has to be captured into the contract. 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. 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 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.

The laws that are required by the law to be in employment contracts are also 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 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 hours that the employee is supposed to work per day is highlighted in the statement and if they have to work during the day or night and if they have to work on the weekends like Sundays and if the employees are paid overtime. It should also include if the employee is entitled to holiday entitlement, and this includes the public holidays.
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.