What Is A Contract Of Service
- It is any agreement where:
- You agree to hire someone as your employee, and
- That person agrees to work as your employee.
- If you hire an apprentice, the contract or agreement that you sign is also a contract of service.
- You can offer a contract of service through a letter of appointment/employment.
- As an employer, you cannot change the terms and conditions of employment unless the employee agrees.
Terms Of Employment Contracts
- Terms and conditions can generally be freely negotiated between the employer and employee.
- However, there are labour laws that you must be aware of as they govern the statutory terms of employment.
- If your employee is protected under these laws, your contract cannot be less favourable. You also cannot refuse the employee protection.
- If your employee does not fall under any of the labour laws or regulations, all the rights and obligations of the employee are those set out in the contract.
- While you can always draw up a simple contract on your own, it is always good to seek legal advice.
Help With Drafting Employment Contracts
- There are associations, lawyers and Human Resource consultants whom you can turn to for help.
- They will be familiar with employment contracts and can advise you on your rights and obligations.
- You can also attend workshops and learn how to draft an employment contract on your own. Workshops are run by:
Important Terms To Include In An Employment Contract
- Commencement of employment
- Appointment – job title and job scope
- Salary and payment of salary
- Bonus and payment of bonus
- Working hours
- Benefits (e.g. sick leave, annual leave, maternity leave)
- Probation period (if any)
- Termination of contract
- Code of conduct (e.g. punctuality)