Why Employment Contracts are Necessary
The relationship that exists between the person employed and the employer is contained in a contract. This has caused some disagreements, and this is why we have the tribunal claims. 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.
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. When this happens and there is no written contract, there might be an oversight of these changes, but when there is a written contract this information has to be incorporated into the contract. When an employment contract is signed by both parties the terms of employment are well highlighted to ensure that both the employer and the employee understands the terms that both have to abide by. Both the employer and the employee have to sign the contract so that it can be in operation. 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.
Also the terms and condition that are established by custom and practice are 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. The terms are written to express the agreement terms on both parties and then there are others that are implied into the agreement.
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.
The payment terms are noted down. All the holidays are that the employee is entitled to are highlighted.
If an employee will at some point be required to travel somewhere for employment this is captured in the contract and also the nrservice they are to offer to the employer.