ABSTRACT
Studying the contract of employment may at fi rst consideration appear procedural and tiresome. However the contract of employment underpins the relationship between the employee and employer, setting out the rights and responsibilities of both parties, and is usually the fi rst document referred to in a dispute. Thus, the contract of employment becomes one of the most important documents a business can produce. The type of contract offered can vary, and guides the work practices of the employee, such as the number of hours worked, location, rights and benefi ts. The employer would also need to consider which type of contract is most suitable to the type of work, such as a zero hours contract, a full-time or part-time employment contract. So for both parties, being clear about expectations at the outset can help to avoid uncertainties. The contract of employment can also distinguish between employed and self-employed, identifying, for example, who pays tax and National Insurance, and establishing employment rights and protection for the employee. Recent years have seen variations on the traditional employment contract emerging, such as the increasing use of zero hours contracts. It could be argued that these more fl exible contracts suit businesses during diffi cult economic times and enable businesses to continue to trade, but their impact and the employment rights of the employee are not clear-cut. In the event of an issue arising, there is an expectation that the employer and employee would refer back to the contract of employment, and try to work through the issue informally. There is an expectation that the employer would act reasonably, and seek to reach an agreement. You will see how important the contract of employment can be to a business as you read through this chapter, and how it can shape working relationships on a practical level.
