Contract Terms

As probably the most important document of your working life, it is essential that you know at least the basics about your contract of employment and what it means. A contract sets out the terms and conditions upon which you are employed, listing the majority of obligations and rights of both the employee and employer. These terms are often negotiable but, once agreed and accepted, the contract is legally binding on parties.

The employment relationship is a contractual standing and must have all the basic elements of an enforceable contract to make it legally binding. In strict contractual terms, the offer is made by the employer and formerly or informally accepted by both parties’ employee and employer.

The acceptance maybe merely verbal or writing, or conversely the employee may signify his acceptance by merely turning up for work on the accepted day. In some cases , such as if an agreement is based on a verbal exchange, the very act of starting work signals that you accept the terms and conditions offered, and a contract is effectively entered into. It is advisable to read Employment Rights Act (ERA) to further understand the importance and rights of your working contract.

The consideration within the contract is the promise to pay wages on the part of the employer, and the promise to provide the services on the part of the employee. Once the acceptance has taken place there is a legally binding agreement and action will lie against the party who breaches that agreement, even though it may only just have come into existence/effect. (Parties intended within the contract).