Benefits of Employment Contracts
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. 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. 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. The contract starts to work immediately it is signed by both parties. The contracts are called a common law employment contracts.
It has the agreed terms between the employee and the employer. 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.
The laws that are required by the law to be in employment contracts 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. 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 contract document contains information like the business address, the Business name, a name of the employee, the job description, work title and other information.
It also highlights how much, and how often and how an employee will be paid. It should also include if the employee is entitled to holiday entitlement, and this includes the public holidays.
The best way to acquire the information is by signing the contract of employment, which means that the employment must be provided before the commencement of employment.
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