Employment Contracts Explained: From Implied Terms to Express Agreements

Employment contracts are a crucial aspect of any employment relationship. An employment contract is a legally binding agreement between an employer and an employee which outlines the terms and conditions of their working relationship.

It’s important to understand the various types of employment contracts, as they play a pivotal role in defining your rights and responsibilities to your employer. In this blog post, we’ll explain the different types of employment contracts, what they entail and how they affect employees.

1. Implied Terms

An implied contract is a contract that is created based on the actions and conduct of both parties without being explicitly expressed. This means that even when there is no written agreement between the employer and the employee, the law can still impose certain terms based on how the employment relationship unfolds.

Some of the implied terms in an employment contract may include the employee’s duty to obey the employer’s reasonable instructions, provisions for the employer’s duty to provide a safe working environment, the employee’s duty to work with reasonable care and skill, and the employer’s duty to pay wages and provide benefits as agreed.

2. Express Agreements

Unlike implied contracts, express agreements are written agreements between the employer and employee that are explicitly stated. These contracts include any terms and conditions that are clearly mentioned, such as the employee’s job title, salary, working hours, holiday entitlements, notice period, and any other benefits.

Express agreements are necessary in order to avoid misunderstandings between the employer and employee. They ensure that both parties are aware of their respective obligations and therefore limit the likelihood of disputes arising.

3. Fixed-term contracts

Fixed-term contracts are employment contracts that have a clear end date. These types of contracts are often used for project-based work or to provide cover for a temporary shortage of staff. Fixed-term contracts must be for a genuine reason and cannot be used to avoid giving workers permanent employment status.

Fixed-term contracts may be renewed if the same genuine reason for hiring the employee still exists or may be converted to a permanent contract if the employee is still employed beyond the fixed-term contract.

4. Zero-hours contracts

Zero-hours contracts are a type of contract that doesn’t guarantee any hours of work. This means that the employer can offer the employee work when it’s available and the employee can choose to accept or decline the offer. Zero-hours contracts are often used in industries with a high demand for flexible work such as hospitality, retail, and healthcare.

Zero-hours contracts have been controversial in recent years, with critics arguing that they offer little job security and can put employees in a vulnerable position. However, for some workers, who need flexible work or who want to supplement their income, zero-hours contracts may offer flexibility and opportunities.

5. Freelance contracts

Freelance contracts are agreements between a company and a self-employed individual. Freelancers are not employees of the company, but rather independent contractors who offer their services for a fee. Freelance contracts may include details such as the freelancer’s scope of work, payment terms, deadlines, and confidentiality clauses.

Freelance contracts are popular among individuals who want to work for themselves, and who have a set of specialized skills or knowledge. They allow individuals to have more control over their work, their terms and conditions, and their time.

Conclusion

Employment contracts come in many different forms and can create varying rights and obligations for both employers and employees. The type of contract you enter into with your employer will have a significant impact on your working conditions, your job security, your rights to benefits and pay, and your legal recourse in disputes.

If you’re unsure about your employment contract, seek advice from an employment contract solicitor, who will be able to offer specialist guidance in this area. Understanding your contract and knowing your rights and obligations as an employee is critical in establishing a positive and productive working relationship between you and your employer.