Overview of a Contract of Employment

What is the Contract of Employment?

The contract of employment is a fundamental type of contract used in labor law to elucidate upon the rights and responsibilities of an employee and his or her relationship with their underlying employer. In a general sense, the contract of employment affirms a relationship of economic dependence and social adherence in regards to appropriate workplace behavior. The contract of employment is a legally binding agreement, made between the employer and the hired employee. It states the intricacies of the specific employment and the particular rules that would necessitate a termination.

The contract of employment establishes the terms of the employment relationship; it legally upholds and indicates the employees pay, the expected responsibilities and duties that the employee must satisfy, the appropriate dress code of the office, the amount of sick/vacation days the employee is given and in general, a conduct policy that the employee must abide by. Furthermore, the contract of employment will also detail the rights awarded to the employee and will illustrate upon the punishments, such as termination, if the policy or employment contract, is breached in any way.

The contract of employment is typically enforced so long as the terms are not egregious; outlandish policies refer to any instance that violates worker-protection legislation. In summation, the employment contract will dictate aspects of the behavior of both the employee and his or her employer.

Information regarding a Breach of the Contract:

A contract of employment breach is a situation where either the employee or the underlying employer, fails to comply with the provisions found in the agreement. All employment contracts are legally binding agreements that govern the relationship between the two parties; if either party fails in fulfilling the terms of the agreement, a breach has occurred.
The penalties of a breach will vary, depending on the severity of the violation. For instance, if an employee is habitually late and tardiness is not tolerated in the contract of employment, the employee may be terminated. In a more severe case, if the employee was partaking in an illegal activity, such as insider trading, the employer may seek a legal remedy through the state’s court system.

In the majority of countries a contract of employment breach will apply to both the implied and expressed provisions of the agreement; such a stipulation makes it necessary for both parties to adhere to the terms of the employment contract, along with any governmental regulations that apply to the employment.