The purpose of an employment contract is to ensure that both you and your employer have a clear understanding of what is expected during the period of employment. The contract can also serve to eliminate any disputes which may arise, and can help to understand what the employer or employee’s rights are under the law.
The contract can include a variety of details, and this can differ from company to company. Contracts can also be either permanent or temporary, depending on the terms the employee was hired on.

Protecting The Employee

When the employee signs a contract (or agreement) of employment, the employer and employee must both understand that whatever is stated in the contract, can be used in any disputes (such as unfair dismissal) to protect the employee. Signing such a contract proves that you accept the terms and conditions offered by the employer.

Protecting The Employer

A contract of employment also protects the employer, as it manages the behaviour of the employee during his or her time at the workplace. This is important because all company policies, as well as an employer’s disciplinary code, should form part of the contract.

A contract of employment is basically an agreement between an employer and the employee, and forms the basis of the employment relationship. Most contracts do not need to be in writing to be legally valid, but it is always better if they are.