Why Employment Contracts are Necessary
Before and employee starts an employment there has to be an agreement between the employer and employee known as a contract. 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 usually put in writing by the employer incorporating the terms and both the employer and employee have to mutually agree with the standard form, or with the negotiated terms that exist between both parties. 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. 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 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.
The contract of employment includes the terms and conditions that the employer and the employee has agreed on. The terms and conditions that are negotiated through the corrective agreement are included in the agreement contract.
Also the terms and condition that are established by custom and practice are 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 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 contact information include all the personal information between the business and the employee.
It also highlights how much, and how often and how an employee will be paid. 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.