Importance Of Contractual Relationships

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

This is the quickest and most cost-effective way to comply with all current employment regulations.

1. Names of the Parties

The employer's organisation details and the employee's full name and address.

2. Start Date

This is important as it also includes a brief statement to say that employment with a previous employer does not count towards the various rights that are gained by employees after one and two years of service. 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

Pension

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