Why employment contract is so important?
Employment contract: When individuals speak on "contract of employment", often times have in mind a written paper which is simply a contract between employer and employee. In fact, an employment contract is not required to be in any writing at all. "Contract" is simply another word for an agreement. As we see all-to-often, employers do not put these terms of employment in writing but rather do so at their own loss or misfortune.
Something's that can go wrong with contract employment are things are kept informal, having nothing specifically on paper. Perhaps one you have a discrepancy with your pay, haven't been paid overtime at double rates, if your claim goes back several months you are solely relying on a promise that was made between you and your employer when employment started. If the employer disagrees the claim would then go to an employment mediator such as a court or labor board. Although, a situation such as this, can be been avoided by either a statement of employment terms or a written contract of employment.
An employer is obligated under the Employment Rights Act of 1996 section one to provide a pre-employee and all employee's with a written statement with the terms of employment clearly shown. However technically this is not the same as a written contract of employment, because there is no record of all the terms of employment, just the important ones. The statement is required to be given to the employee within the first two months of being hired. If an employment mediator is requested, the employment judge will treat the statement as strong evidence of what should have been abided by.
Important information included in the statement are the names of the employer and employee, the date of which employment began, the terms speculating pay and intervals of pay, hours of work, holiday entitlements, pensions, termination information and job title or a brief summary of job description. Some advantages of a written employment contract are one gives an added layer of security to employers and employees alike, whereas a standard statement of terms is simply to show what was agreed. An employment contract contains the terms itself. An employee may benefit from a full written contract, because it may be a form of peace of mind.
On the other hand it may be because the employee themselves has negotiated terms which have a sort of part of the standard statement. An easy example could be benefits such as medical insurance, under a permanent health insurance set-up, or a healthy compensation package to be paid on upon-termination. Whether or not, it is a standard statement of terms or a full written contract of employment. It is known now get it right the first time, and get it in writing.
A well-set-up document lets all parties involved know where each stand and avoids discrepancies later on. Which in leads on the contrary a poor written document or nothing at all, runs with a big risk and could end up being time and money costly..