Employment contracts are vital documents that regulate the terms and conditions of an individual’s employment at an organisation. In many instances, employers overlook the employment contract/agreement or set in place a poorly drafted and inadequate document. The failure to set accurate and binding written contracts is most seen in start-up and small business. It’s dangerous to assume that relaxed, verbal contracts are enough with employees, regardless of the size of the business and the presumed nature of the employee.
Employment contracts and agreements protect the employer just as much as they protect the employee. This is because they are designed to regulate the behaviour of employees in the work environment. They are exceptionally important as the company policies as well as the disciplinary code is all included in the contract/agreement.