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 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. 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. 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. The contract starts to work immediately it is signed by both parties. 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 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. 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.
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.
Employers are supposed to give the contracts to their employees. 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.
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.