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. 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. 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.
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 of employment are referred to as the common law employment.
It has the agreed terms between the employee and the employer. 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. Some are the requirement that an employer should have and so they are included in the contract
so that the employee can abide by them.
An example is how the employees are supposed to act in good faith, and the employers have confidence and trust the employees. All the terms are well highlighted in the agreement contract.
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.
The payment terms are noted down. If an employee is to go for public holidays, the information is captured in the employment contract.
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.