Many are surprised to learn that it is indeed law that workers obtain written working conditions within two months of taking office. Employers may also be fined between 2 and 4 weeks per worker for not giving employees written terms and conditions. Many believe that employment contracts should only apply to full-time workers or should not be awarded to senior managers within the company, but the fact is that all workers, including fixed-term workers, have the same rights as full-time workers and that they should all be covered by contracts. However, there are times and circumstances when another provision is desired. An employment contract allows the parties to negotiate the terms of the employment agreement in order to offer protection and clarification to both parties. There is also the obvious advantage that the contract clearly defines what the parties have agreed with respect to the obligations and rights of the worker, both during and after employment. The main advantage of employment contracts is to reduce the risk of future workers` rights. By ensuring that both parties (employers and employees) agree to the terms that will then be signed, this mandatory contract aims to reduce the likelihood that a party will be able to take legal action at a later date. An employment contract is a compulsory contract between an employer and that employer`s worker. The treaty covers specific aspects of employment. These include salaries, health insurance benefits, pension benefits and bonuses. The contract provides grounds for termination.
The contract may also provide for severance pay in the event that the employee is dismissed. In addition, many analysts refer to small businesses as a catalyst for the growth of these agreements. “In recent years, employment contracts – and the benefits, bonuses and stock options that are often provided for in these contracts – have become commonplace and necessary for high-tech, software, online and multimedia start-ups that contract additional rooms, garages and subleased offices,” observes Owen Sietel in Multimedia and Entertainment Law Online News. “The success of many such companies is now well documented, as is the wealth that talented people, who have linked their complicity to the success of these companies and obtained millionaire status without ever donning a business suit.” Under the common law, which is a “judicial” right, a worker`s right to severance pay/notification is decided on a non-exhaustive list of considerations. These considerations include the nature of the job, working time, the age of the worker and the availability of alternative employment. Each case is judged on its own merits.