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Task 6: Contract - Essay Example

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Understanding the Employment Contracts We make contracts in our daily life and fulfil most of them too; but we are not aware of the definition and elements of a contract to identify them. The definition of a contract is helpful to understand the significance and wide use of it in our daily lives…
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Task 6: Contract
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Download file to see previous pages Most of the people who work for any organization or employer for a fixed remuneration generally have a contract of employment whether or not they set written clauses and terms for it. The open-ended employment contracts are used by most of the people. These contracts do not place time limitations on employment period but continue as long as the employer or employee dismisses working. Others, however, use specific purpose or fixed term job contracts which specify a fixed time period or a particular task completion as the end of the employment. The contracts of employment contain certain elements which may or may not be agreed in writing. These include the statutory or legal requirements of employment contract. The terms which are mandatory by law to form a part of employment include the duty of employers to provide safe and sound working environment to the employees, the employee’s duty to perform the delegated tasks as efficiently as possible and so on. These terms are known as a part of common law. On the other hand, the employment contracts have certain terms which are specified as a part of the employment contract due to the requirement of law. These terms include the rights of employees to take leave for important health issues like maternity leave. These terms are assigned by the law to be a part of all employment contracts. The employer and employee do not have the power to agree on contrary terms than the statutory ones as specified. Even if they do, those agreed terms cannot override the statutory rights of employees or employers. These terms are included in every employment contract as the laws enforces them and even if these are not specified in the contract agreement, these terms are a part of the employment contract due to th statutory requirements. The contract of employment carries terms and conditions which must be well understood and discussed before signing the contract. These terms and conditions include the agreements on overtime pay, right to join trade unions etc. These form a part of the contract and help in seeking legal advice if the events go against the agreed terms and conditions. A contract is a legal agreement between the involved parties for example between employer and employee. A contract defines the responsibility of both the parties and their rights, and since it is a legal document so can be placed forward as evidence in the court of law for any party being negligent according to the contract made. An employment contract contains the Table of Responsibilities, abbreviated as TORs, for which the employee is obliged to be accountable to the employers. The employment contract also contains the rights of the employee in carrying out the duties assigned, and the communication line for normal and unusual situations or at least defines the concerned people to whom the employee is required to be answerable in case of any unusual events. The employment contract also contains the number of hours and the days that the employee is contracted to work in the normal circumstances and pay rates for normal hours and over time. It also give specifications about the bonus and benefits that would be given and any restrictive covenants over it like an employee may be given a motor car with 1000 litre fuel monthly and bonus in the form shares of company but having restriction of not selling those shares for three years from ...Download file to see next pagesRead More
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