What is the meaning of Employment Contract ?

A contract of employment, also known as an Employment Contract, employment agreement, or job contract, is a contract between an employer and employee that outlines the terms of a job such as the rights, responsibilities, and obligations of both parties.An Employment Contract is what employers and employees use to clearly outline the rights, responsibilities, and obligations of the parties during the work period.It may include information about compensation (pay/wage), vacation time, the job description and duties, probationary periods, duties of confidentiality, termination procedures, and information about both the employee and employer.

Employees are people who work for a business and who receive monetary compensation from the employer in return for their services. Since there are various types of employment, you will need to ensure that you are classifying your workers properly in any contracts that you create with them.

Employment types include:

Permanent Full Time: A permanent full time employee is someone who will be meeting the requirements for full time hours and who has no predetermined end date to his or her employment.

Permanent Part Time: A permanent part time employee is someone who will not be meeting the requirements for full time hours and who also has no predetermined end date to his or her employment.

Fixed Period or Term: An employee who is on a fixed period or fixed term employment has a prearranged end date to their employment. The contract automatically expires on the end date, and no notice is required from either party to end the employment at that time.

It is common for employers to require that a new employee complete a probationary period of 3 months or more. This period is used to determine if the employee will fit with the company’s goals, if they have the necessary skills to perform the required tasks, and if the employer or manager believes that they are capable of being a part of the company long-term. An employer may terminate its working relationship with the employee at any time during the probationary period without cause and without need to provide notice or severance pay.After the probation ends, and the company has decided to continue to employ the new hire, the employee qualifies for any health or other benefits that other workers of the same nature within the company receive. Once the employee has passed their probation, the company is then required to either have just cause to terminate an employee or to provide adequate notice upon termination and/or severance pay to the employee.