The signing of a contract of employment sets the standard and guides the employment relationship into the future. It gives security to both employee and employer.
A written contract of employment is a great way to clearly define the roles, responsibilities, and the benefits of the employment relationship to prevent any confusion. It is crucial for all employers to issue employees with employment contracts at the start of the employment relationship.
When it comes to saving time and money nothing beats having a strong and solid written employment contract in place. An employer can save themselves a mountain of trouble in the long term by ensuring that the employee agrees to certain terms and conditions before he/ she starts their employment. A good written employment contract will reduce employment disputes.
Employment disputes can harm your business in more ways than we can mention here. They lead to a drop in productivity, employee engagement decreases, and the business usually has to carry the legal costs if unresolved matters get referred to applicable tribunals. The result of disputes can also be seen by your clients and the company can get a bad reputation. Lastly you suffer unnecessary stress and worry during the dispute process, having to focus on employment issues, rather than the operations of your business.
All employees should sign an employment contract, although the terms and conditions in your agreement could differ based on the type of employment agreement you have with the employees.
Here is a breakdown of the most common types of employment contracts:
Full-time employment contract: Employees who meet the requirement for full-time hours (usually 40 hours per week) and are employed on a permanent basis with no predetermined end date.
Part-time employment contract: Employees who work fewer than 40 hours per week (typically 25-35 hours per week) and are employed on a permanent basis with no predetermined end date.
Fixed term employment contract: Employees who are employed for a specific period of time with an agreed upon end date. These employees are different from independent contracts because they are treated as employees throughout the duration of employment, with the same benefits as a full-time employee.
Casual employment contract is typically used when hours for the employee are unpredictable, but less than 23 hours per month.
It is vital that all employers issue their employees with relevant contracts in order to mitigate unforeseen circumstances.
If you are not sure about your employment contracts, it is never too late to contact Rivers Labour Consultancy, don’t hesitate, we are a phone call away.