Advantages of employment contracts to the worker and the employer
reduces risk of misunderstanding, addresses contentious issues early, reduces uncertainty
What is the role of consideration in a contract
the promise to exchange wages for work performed
Legal elements required for an employment contract
an offer, acceptance of offer, and consideration
misrepresentation
where a job candidate misrepresents themselves during the hiring process and it is grounds for dismissal
negligent misrepresentation
by the employer for statements made during the hiring process resulting in wrongful hiring
breach of contract
where a third party is liable if it persuades either the employee or employer to breach the agreement between them
Problems that can make a contract unenforceable
lack of consideration, inequality of bargaining power, obsolescence, failure to meet minimum statutory standards, use of ambiguous language
Problems in changing an employment contract
changes could amount to constructive dismissal, if there is no consideration than the revised terms are not binding on the employee
what is an employment contract?
an enforceable agreement which sets out the key terms and conditions of employment. it can be verbal, written or a combination of the two.
what is the purpose of an employment contract?
to reduce the risk of misunderstandings between the parties, address any contentious issues early in the employment relationship, and reduce uncertainty
Common contractual terms
Job description; Remuneration; Term; Termination; Probationary Period; Relocation; Benefits; Restrictive Covenants; Ownership of Intellectual Property; Choice of Law; Corporate Policies; Entire Agreement Clause; Inducement; Independent Legal Advice; Severability Clause; Golden Parachute
