Business

Understanding Employment Contracts

Contracts are an important assurance in business. There are contracts for various things, including employment contracts. A contract of employment is particularly important because it empowers employees with certain rights, as well as setting out the details of the role.

Everybody who is employed will have an employment contract, even if it’s not written down. Therefore, if you’re an employer you should provide a written contract of employment to ensure that the terms are clear. If you’re a smaller business or you’re worried about what constitutes a contract of employment you might consider using an employment contract template.

What should go into a contract of employment?

The contract should cover the conditions of employment, (i.e. it should outline the nature of the job, payment, etc).

Employees obviously have various rights, and these should be referred to in the contract of employment.

A contract of employment isn’t only about an employer’s responsibilities for an employee, but should also address an employee’s responsibilities in the context of the role. So, as an example, it will discuss what is expected from an employee in their job.

Having this information written down has lots of benefits. Not least, when an employee is dismissed from their job it can be an important document in terms of unfair dismissal tribunals etc.

As already stated, if you’re unsure about what goes into a contract of employment it is common to use templates, which are available through online services.

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