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. If the terms and the conditions of a contract of the contract are not followed the person who has breached the agreement is taken to a tribunal court to answer to some charges. It is a common practice for the employers to enter into agreements with the employees so that they can start an employer and employee relationship. These agreements are supposed to be in writing and have to incorporate the terms that both the employer and the employee have to work and abide with. 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.
When the changes occur in business places the information has to be captured in the agreement contract to protect both the employee and the employer. 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. 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 are called a common law employment contracts.
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.
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.
An example is how the employees are supposed to act in good faith, and the employers have confidence and trust the employees. The terms are written to express the agreement terms on both parties and then there are others that are implied into the agreement.
The employers have to give a written statement to their employee who is a legal requirement highlighting certain particulars of the employment. 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.