Employment contract
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An employment contract is an agreement entered into between an employer and an employee at the commencement of the period of employment and stating the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed.
[edit] Terms and conditions of employment
The central focus of most employment contracts is wages for work. However other essentialia negotii (essential terms) might be notice periods in the event of dismissal, holiday pay rights, the place of work and pension schemes. Many jurisdictions require these factors to be set out in a written contract.[1] In terms of pay, the employee may be compensated through wages, a salary, or by commission. In addition to monetary compensation, the employment contract often specifies a fringe benefit package, including a retirement plan, employee stock options, holiday entitlement, required hours of work, and (especially in the US) health insurance benefits.
Normally, such contracts provide for termination of employment, by either party, and include associated matters such as notice period, compensation arrangements and, sometimes, garden leave.
Some employers also use non-disclosure and non-compete clauses to protect their trade secrets from being dispersed when employees leave. Depending on where you live, the laws regarding enforcability of these clauses vary widely.
UK law holds that employment contracts have implied terms (assumed, unspoken, essential terms ), as well as explicit terms (typically those in writing). Legal precedent provides for example that there is an implied contractual term of trust and confidence, meaning that each party to the contract is expected to behave in a manner that allows the other to maintain trust and confidence in the other.
[edit] See also
- Labour law
- Labor union
- Collective bargaining
- Equal Pay Act
- Fair Labor Standards Act
- Title VII of the Civil Rights Act of 1964
- First Employment Contract and New Employment Contract in France
- Job description
[edit] Notes
de:Arbeitsvertrag et:Tööleping es:Contrato individual de trabajo fr:Contrat de travail it:Contratto di lavoro pt:Contrato de trabalho ru:Трудовой договор sl:Pogodba o zaposlitvi sv:Anställningsavtal
