Q:

What is the purpose of an employment contract?

A:

Quick Answer

Employment contracts are commonly used in three ways: to control the employee in some way, sweeten a job offer and guarantee at-will employment. However, employment contracts tend to be the exception rather than the rule.

Know More
What is the purpose of an employment contract?
Credit: Vasko Miokovic Photography E+ Getty Images

Full Answer

Employers typically use contracts as a form of control. A contract contains the job description, the salary and the terms of employment. This may be the length of time required for an employee to stay with the company to avoid a penalty, or the length of time the job will last. Contracts can also include confidentiality agreements and non-compete agreements. Additionally, employers may use contracts to specify the standard for performance and grounds for termination. These agreements make it easier to fire employees who are not living up to the standards.

Learn more about HR
Sources:

Related Questions

  • Q:

    What is the purpose of recruitment and selection?

    A:

    Recruitment and selection are human resources processes used to attract and hire qualified workers for positions. Recruitment is the use of various methods to communicate with and attract top applicants. Selection is the use of screening tools to narrow the field to the ideal candidate for each position.

    Full Answer >
    Filed Under:
  • Q:

    What is a permanent contract?

    A:

    A permanent contract is a contract without an ending date. An employee and an employer may enter a binding contract where both parties agree to do business with each other for an indefinite amount of time.

    Full Answer >
    Filed Under:
  • Q:

    What is employee welfare?

    A:

    Employee welfare includes everything, such as facilities, benefits and services, that an employer provides or does to ensure comfort of the employees. Good welfare helps to motivate employees and ensure increased productivity.

    Full Answer >
    Filed Under:
  • Q:

    How do you write up an employee?

    A:

    The proper way to write up an employee as a form of disciplinary action is to compose a letter of reprimand. A letter of reprimand outlines the specific offense committed by the employee, supports the allegations with documented proof, and states the consequences for the violation.

    Full Answer >
    Filed Under:

Explore