EMPLOYMENT CONTRACTS
An employment contract (or employment agreement) defines the terms of a legally binding agreement between an employee and employer, such as compensation, duration, benefits, and other conditions of the employment relationship.
An employment contract offers legal protection to both an employee and an employer. If a dispute arises, both parties can refer to the original terms agreed to at the beginning of the working relationship.
As a reference, people also refer to an employment contract as:
Employment Agreement
Work Contract
Job Contract
Contract of Employment
Contract of Service
Formation of the contract of employment
A contract of employment comes into existence when one person, the employee, enters into an agreement with another, the employer, to render personal services to, and under the control of the employer, in return for remuneration. The agreement entered into by the parties must be voluntary. If duress (force or threats) is used to convince the employee to agree to the agreement then the contract is invalid. It is also essential that an employer makes a clear and unequivocal offer to the employee and the employee to accept the offer for an agreement to exist. Once an employee accepts an offer the agreement cannot be unilaterally cancelled by one party.
Employment Contract Key Takeaways
A legal agreement between the employee and employer
Outlines responsibilities, compensation, and benefits
Different types of employment contracts for different work statuses
At Red Circle HR Solutions we assist you with contract management solutions and help you keep your employer and employee relationship strong