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. This has caused some disagreements, and this is why we have the tribunal claims. 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. 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.
The operations of businesses can change, and if this happens, the information has to be captured into the contract. 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. 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 of employment also referred to as the common law contracts consists of the following.
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. There are also other terms which are necessary to make the contract work.
An example is how the employees are supposed to act in good faith, and the employers have confidence and trust the employees. The contract terms are well highlighted in the contract for both parties to understand.
The employers have to give a written statement to their employee who is a legal requirement highlighting certain particulars of the employment. The contact information include all the personal information between the business and the employee.
The payment terms are noted down. It should also include if the employee is entitled to holiday entitlement, and this includes the public holidays.
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.