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Why Employment Contracts are Necessary

The relationship that exists between the person employed and the employer is contained in a contract. We also have tribunal courts that will look into cases that occur as a result of the contracts being followed. 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. Some of the employers will ignore this and agree on a verbal agreement with their employees they, therefore, do not finalize with the terms of employment in a written form or an employment contract.

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. Both the employer and the employee have to sign the contract so that it can be in operation. The contracts of employment also referred to as the common law contracts consists of the following.

The contract of employment includes the terms and conditions that the employer and the employee has agreed on. The terms that you have agreed on are included in the written contract.

There are employment laws that are supposed by law to be included in the contract agreement, these are also included. There are also other terms which are necessary to make the contract work.

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 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 hours that the employee is supposed to work per day is highlighted in the statement and if they have to work during the day or night and if they have to work on the weekends like Sundays and if the employees are paid overtime. It should also include if the employee is entitled to holiday entitlement, and this includes the public holidays.
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.