Importance Of Employment Contract

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Task 4(b) A contractual relationship is evidenced by (1) an offer, (2) acceptance of the offer, and a (3) valid (legal and valuable) consideration. Each party to a contract acquires rights and duties relative to the rights and duties of the other parties. However, while all parties may expect a fair benefit from the contract (otherwise courts may set it aside as inequitable) it does not follow that each party will benefit to an equal extent. An employer must provide an employee with their employment terms, (known as a "statement of terms") within two months of the employee's start date. However, a statement of terms is the bare minimum required by law, and does not protect employers properly. That is why an employment contract is much better…show more content…
In other words, the employee starts again from zero with the new employer. (Exceptions to this are where an employer has taken over an organisation with existing employees - their employment rights are maintained.)

3. Job Title and Description
This usually follows the job title and description specified in any recruitment advertisement and subsequent offer letter. To suit the employer it also allows for flexibility in the employee's role.
4. Place of Work
Allows the employer to specify the location where the employee will work. However, it also allows for the employer to specify any other location in the future. This gives the employer much greater flexibility.
5. Hours of Work
The employee's hours are specified in the contract; however, the employee also agrees to work additional hours if the employer reasonably requests it. However, the hours cannot exceed the 48-hour per week as specified by the Working Time Regulations, (unless the employee has signed a voluntary opt-out from the Regulations).
6. Probationary Period
The employer can specify a trial period for the employee with the option of a short notice period at the end of the trial if the employee does not fulfil expectations. The employer can also extend the trial
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This clause states the pension provision - company pension scheme, a stakeholder pension scheme or whether the employment comes without a pension provision.
14. Notice
The notice period to be given by either the employer or the employee. However, this clause also provides a detailed list of actions that constitute gross misconduct allowing the employer to dismiss without giving notice. Please see our Grievance & Disciplinary Policy, which is included free with all our contracts.
15. Restrictive Covenants
This is only included within the CompactLaw Long Employment Contracts. It protects all confidential and commercial information belonging to the employer. Prevents an employee from setting up a competing business whilst still employed. Also prevents an employee from competing for a set period of time and within a defined geographical area once they have left the employer. Other restrictions include attempts to encourage other employees to leave and work in a competing business. Finally, the clause states that any breaches will entitle the employer to seek legal redress, including damages for any loss.
16. Grievance and Disciplinary

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