Contract of Employment

What is a Contract of Employment?

An employee contract, also known as an employment agreement, is a written agreement between an employer and an employee. This legally binding document outlines the rights, responsibilities, and obligations of both parties.

It sets forth important terms and conditions of employment, such as job title and responsibilities, work hours, salary or wages, benefits, grounds for termination, and any other terms relevant to the employment relationship.

What are the benefits to creating a Contract of Employment?

1. Clear Expectations: An employment contract sets clear expectations about job duties, working hours, and compensation, reducing the potential for misunderstandings.
2. Protection of Rights: The contract protects both the employer's business interests and the employee's rights, providing a recourse if either party fails to meet their obligations.
3. Job Security: For employees, a contract provides job security for the contract's duration, especially in the case of fixed-term contracts.
4. Legal Compliance: Employment contracts help ensure that both employers and employees comply with local and national labour laws.
5. Retention of Employees: A well-structured contract can help companies retain key employees by offering competitive terms and conditions.
6. Protection of Confidential Information: Employers can use confidentiality and non-compete clauses to protect their sensitive business information and prevent employees from moving directly to a competitor.