A contract of employment is an agreement between an employer and employee. This contract will set out the employee’s employment rights, responsibilities and duties. Employment contracts are often thought of as being written documents, but this is not always the case. A ‘contract’ could just be a verbal agreement. However, having written contracts of employment can bring many benefits to businesses.
A contract should contain specific terms of employment that are not enforced by law. This could include any flexibility in the employee’s hours or place of work, any holiday restrictions imposed by the company and the notice period that the employee must give. If these terms were not put in writing, it would be difficult for an employer to impose them at a later date. A contract of employment contract template can be used by an employer to make sure all the necessary details are included.
An employment contract can be used to provide security for both employees and employers. Because the contract will clearly detail all the terms of employment, there can be no doubt about these terms in the future.
If a dispute between an employee and the employer arises, the employment contract can be referred to. The written document can be used as evidence, helping to avoid legal difficulties.
An employment contract can also help foster a positive relationship between employer and employee. For the employer, is provides organisation and structure in the workplace. For the employee, it gives them a sense of job stability.