The importance of an employment contract

When many people speak about a contract of employment, they usually have a written document in mind. However, a contract of employment doesn’t necessarily need to be written in a document at all. A contract is another term for an agreement. Nevertheless, employers who choose not to place the terms of employment within a written document, do so at their peril.

An solid and detailed employment contract is extremely important and not to mention beneficial to both the employer and the employee. A well written and evaluated contracted should outline the obligations, the rights, the wrongs for each party involved. Not only does it highlight the rules and regulations of an employment role but it also aids in job security for the employee and can protects the employer from specific risks such as the release of confidential employer details and information after employment term is finished. A handful of jurisdictions require a written up employment contract for specific job roles.

Employment Term

Many employment contracts set a clear and definitive outline of the employment term. This reassures employees a job as long as they don’t infringe the terms within the contract, and also allows employers to dismiss a member of staff at the end of their term. The length of this contracted term is often carefully negotiated before starting the employment.

Employment Termination

A good example of an employment contract will determine exactly what offenses can lead to a dismissal or official termination of the employee. This helps both parties, as it ensures that the employee knows which activities or actions are required and which are entirely forbidden. This means rendering a serious offence less likely during employment. It’s recommended that the current labor law of this specific jurisdiction should be considered to make sure that the terms of the employment contract do not contradict with any legal requirements.

Employment Duties

The duties and job roles of both the employee and the employer should be outlined clearly and spelled out within business employment contract. This section of the contract should primarily include the job duties of the employee, along with benefits and salary. If there are any overtime incentives, this should also be included within the contract document. It also should be mentioned within the contract that the employer holds the right to transfer the employee to another job role or position, however if this happens, the employment contract needs to be updated to reflect the employee’s new duties in their new job role.

Non ompetition Covenants

If the new employee will have specific access to various confidential files or company information, it is extremely important from the employer’s perspective to include a clause that prevents the employee from divulging any details or information to others. An employer may also want to prohibit the employee from working with or for other business competitors, although the labor laws of many jurisdictions differ on the acceptability on such a clause. Nevertheless, in both cases, non compete clauses are commonly binding on the employee for a specific period (this could be two or three years, for example) after termination of the employment.

Dispute Resolution

Another good example of an employment contract will clearly outline dispute resolution measures that can minimise the expenses and considerable amount of time of a legal courtroom battle that in most cases neither party can or wants to pay for. Procedures to settle a dispute usually reduce expenses and time, although many appeals from from arbitration decisions are commonly quite difficult. A range of jurisdictions will require that employment disputes should be brought to an appropriate employment dispute (disagreement) resolution tribunal, and if in which case, then no dispute resolution clause within the contract is necessary or required.

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