What is an Employment Contract?
An Employment Contract, also known as an employment agreement, is a document that outlines the rights, responsibilities, and obligations of an employer and employee. For instance, this agreement typically contains information about wages, benefits, hours, and job responsibilities.
Different type of Employment Contract:
Full time: A full-time employee typically works more than 30 hours a week and receives benefits that other employees don’t.
Part-time: A part-time employee typically works less than 30 hours a week with a guaranteed minimum number of work hours.
Casually: A casual employee doesn’t have a guaranteed minimum number of hours but works as needed.
Who are the parties in an Employment Contract?
The two parties in an Employment Contract are the employer and the employee. Both parties should include their name (for either a company or an individual) and contact information, and they should each sign the agreement. A signed contract protects the interests of both employees and employers.
How does an Employment Contract protect employers and employees?
The terms set out in the agreement help mitigate any risks to an employer when hiring a new employee. For instance, the contract often includes conditions (such as prohibited behaviors) upon which an employer may terminate the employee without notice. For example, if the employee were to breach a confidentiality clause, the employer may have the right to immediately dismiss them.