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What is the contract of employment? The contract of employment is an agreement between employer and employee which governs the relationship between the parties.  To many people’s surprise it need not be in writing however, there is an obligation upon an employer to provide a statement of written terms and conditions within 2 months of employment commencing.

Taking the time to carefully prepare a contract of employment or terms and conditions for each employee reduces disputes and ambiguity about the employment relationship. As each business has different needs the style and content of the contract of employment will differ.

What does the contract cover?

The content of each contract will depend on the nature of the business and the job which is on offer.

The law provides minimum rights and obligations, including the right to a safe system of work, minimum notice periods, the duty to obey reasonable and lawful orders and the mutual requirement of trust and confidence. These rights and obligations are implied into all employment contracts.

Disputes do arise over contractual terms, often in relation to the correct level of pay or holiday entitlement.

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