Ready to design the contract of employment? Then, this article is meant for you as it contains all the important information to be captures in the document
A contract of employment is an agreement between an employer and employee and hence it is the basis for employment relationship. It is a legally binding document that creates the legal relationship between the employer and the employee. In order to conform with the legal requirement, a contract of employment should contain the following

● The Name of the Employee
● The Name of the Employer
● The Date Employment began
● The Date when any period of continuous employment began. This may be the same as the starting date for employment.
● The Job Title
● The rate of pay. Also, it can be referred to as the method for calculating pay either hourly or monthly
● Working Hours
● Holiday Entitlement
● Entitlement to Sickness pay
● Details of the Employer’s pension scheme
● The length of notice for either employee or employer to terminate the employment
● If the employment is for a fixed term or temporary details of this contract
● The regular place of work
● Details of grievance and disciplinary procedure

Why Is Contract of Employment So Important?

Engaging in the act of producing a contract of employment is very important because it provides the following

● It gives both the employee and employer a certain level of protection, most especially when it is in written form
● It will provide conclusive certainty as to what the terms and conditions of employment are
● It will also provide additional terms that a statutory statement cannot give.
● It allows employers to include additional terms like restrictive covenants or the need to have a DBS Disclosure by employee
● It provides employee with peace of mind and security.
● It prevents disputes further along the line during the employment process
● It prevents employee from making claims at the Employment tribunal which will incur heavy cost on your business.
● It protects the employer as it regulates the behavior of the employee in the workplace
● It spells out the right and obligations of both the employee and employer.
● It regulates the taking of leave entitlements
● it sets out performance requirements, including any applicable commission or bonus scheme
● it protects employer’s confidential information and intellectual property
● it assists in recovering of overpayments to an employee in the event of termination.
● It helps to include pay, overtime and benefits clauses for both award and non-award employees.

However, as there are many benefits associated with contract employment, there are some other cons that it presents. These cons include

● It leads to social exclusion for the employee
● If not properly handled, it might cause insecurity to employee and employer
● Also, if not handled well, there might be no entitlement

Managing a contract employment is very important for both the employee and employer and that is why it is important to seek legal advice before making the contract. If you want to learn more about seeking legal advice in the event of an unfair dismissal, visit http://www.hibberts.com/unfair-dismissal/ today.