Every employment relationship has a beginning and an end, as defined by employment contracts. These contracts detail the prerequisites, rules, and terms and conditions of employment, making them crucial documents that require careful attention during drafting. According to Section 2 of the Employment Act, employment involves a contract between an employer and an employee, with the employee providing labor. The Act also defines “forced labour” as work or service performed under threat and without voluntary consent. This article explores lesser-known aspects of employment contracts.
Definition
Allow us to start by explaining what the term contract of employment means, section 2 of the Employment Act states that this contract is “an agreement, whether oral or in writing, expressed or implied, whereby one person agrees for a wage or other benefit or both to let his labour to and to perform it under the orders of another person who agrees to hire it”. Now that we have an understanding of the key term at hand, let’s dive into the main issue. Read on!
The hidden truths
Employment contracts fall under the category known as contracts of service or employment. This type of contract is with reference to the above definition, it involves the hire and provision of a service underemployment. There are certain obligations employers ought to provide, for example, leave days, terminal benefits, rest days etc. These are legal requirements therefore, failure to provide such presents dire consequences. The second fact is that written contracts are safer than verbal contracts. Written contracts provide a documented account of what the employment relationship entails as well as some of the previously mentioned entitlements. This makes it easier for one party to prove the existence or nonexistence of certain elements however, this is difficult to prove in oral contracts. Normally when disputes are before the labour department, it is for the employer to prove that whatever allegation has been brought against them, is false unless it is regarding a constructive dismissal. This therefore implies that verbal contracts in retrospect, are a disadvantage to employers.
The third fact has to do with the implied aspect of an employment contract, still with reference to the above definition. Implied terms are conditions that are not in writing but come to be and form part of an employment contract. For example, if a confirmation letter is not provided after the completion of a probationary period, then using this principle such an employee is confirmed. The final fact is that any contract of employment which provides terms and conditions which are less favourable to the employee than those laid down in the Act is null and void to the extent it so provides. A good example is a term that denies an employee overtime pay whereas they do not fall under the category of exempted employees. Even if an employee agrees to such a contract, this term shall remain null and void.
Conclusion
Employment contracts are vital and there is no doubt about that however, it is important to take into consideration some matters which are hidden regarding these contracts before fully engaging.
Contacts
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