Employment contract terms

Terms of an employment contract can cover different areas and come from different sources, Other than written contracts signed by both parties, which are the most common form of employment contract, there are some other ways of stating contract terms: verbally, in the company’s handbook or on a notice board or in a letter of offer. There are also collective agreements, which are usually made between the employer and the trade union staff. These agreements can apply even to the employees which are not members of the union trade. There are also some contract terms that are prescribed by law, such as minimum wage.
Some contract terms are considered to be implied, which means that they need not be given in writing, but they are understood to exist.

They are not clearly agreed by the employee and the employer, but they need to be respected in order for the contract to work. If you have a good business idea, but you don’t know much about these contracts, or you need an advice…find out more here

There are several types of these terms:

Terms necessary for the contract to work – one of the most common and the most important contract term of this kind is the “duty of mutual trust and confidence”. This is never stated in written as a term of the contract, yet it is understood that the employer and the employee will treat each other honestly and respectfully.

Obvious or assumed terms – some terms are considered to be too obvious, so they do not need to be specifically pointed out. A good example can be a term concerning sick leave. It is never stated how long the sick leave will last and how long it will be paid, but it is considered that it cannot be paid forever.

• Lastly, there are terms implied by custom and common practice. They are not universal for all types of companies and work, but they depend on the company’s policy or the custom of the country where the company is stated. A good example can be Christmas, where in many countries it is implied that the company does not work during Christmas holidays or that the employees receive a bonus at this time of year.

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