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Contracts of Employment
A contract of employment is an agreement entered into between an employer and an employee, setting out the terms and conditions of their relationship. Contracts of employment may be oral or written and may be of finite or indefinite duration. A contract of employment comes into existence upon commencement of employment, irrespective of whether a written contract has been provided to the employee or not.
Although the contract itself need not be in writing, employees who have been employed for at least one month are entitled to a written statement of certain particulars of employment within two months of starting employment. An employer who fails to comply with this statutory requirement could be required to pay compensation to the employee of two to four weeks' pay.
A contract of employment may contain express terms, namely those that are agreed either in writing or verbally, as well as implied terms. Implied terms are usually terms which are too obvious to be expressly agreed; or terms that are necessary to make the contract workable; or terms that are established by custom and practice.