Most people don’t like contracts, because signing a contract can feel like a big deal. While it’s certainly not to be taken lightly, contracts are generally there to help both parties.
This is also true for employment contracts – they are mutually beneficial for the employer and employee. While there may be certain clauses in the contract that make people feel boxed in, ultimately, employment contracts are very important. If you’re still not convinced, keep reading to learn about a few reasons why they are important.
Employment contracts protect people
Employment contracts protect both parties. This is because, for a contract to be valid, it has to be legal.
Therefore, contracts ensure that no one is taken advantage of and that nothing in the contract is illegal or violates someone’s human rights. It can also protect employees from being fired without a valid reason. And, of course, certain clauses in contracts also protect employers. Examples of these include non-disclosure agreements or non-compete agreements. It’s always a good idea to have a lawyer look over a contract to make sure that everything is in order. HKM Employment Lawyers review employment contracts, so they may be able to help.
They list the duties of the employer and employee
Contracts also act as guidelines, because they list certain duties that employers and employees must fulfill. For example, the employer must pay the employee the salary laid out in the contract.
On the other hand, employees need to do their job, and an employment contract will state exactly which duties are a part of this job.
This way, everyone involved knows what is expected of them. It is always a good idea to make a backup of employment contracts in case the copy ever goes missing. This ensures that both parties can check the contract at any time if they need any clarification on something.
They list the rights of both parties
Of course, employers and employees also have rights, and a contract is there to discuss these. For example, the employee has a right to sick leave, as well as personal leave which they can spend however they want – for example, going on holiday or simply taking a break from work. Employers may have the right to look at an employee’s work email or to subtract a certain amount from their salary if they do not fulfill their duties.
By clearly stating these rights in an employment contract, everyone can rest assured that they will not be treated unfairly.
Employment contracts help create a good working environment
Employment contracts are also important because they help create a good working environment. They do this by making sure that everyone knows what is expected of them as well as what they can expect from the other party, which can help to prevent misunderstandings.
It also ensures that the employer and employee fulfill their responsibilities towards one another. This will help create a positive work environment, which is beneficial for everyone. After all, employers don’t want to hire the perfect employee only to lose them because they didn’t have a contract in place.