An employment contract is a legally enforceable agreement between an employer and an employee. It outlines each party’s obligations and rights and provides a framework for employment laws and regulations.
And there are various types of employment contracts available that differ in terms of duration, benefits, and employee rights. Some of them include:
This type of contract allows individuals to gain valuable work experience in a specific field while obtaining a recognized qualification. This can significantly benefit people starting their careers and seeking hands-on experience in their chosen industry. However, apprenticeships may have lower pay than other contracts and involve a more extended time commitment.
Internships allow individuals to gain professional experience and make essential connections. They are an excellent way for individuals looking to explore different industries to gain practical skills and enhance their resumes. However, they may be unpaid, leading to uncertainty after the contract ends.
Zero-hour contracts offer flexibility for both the employer and employee, which can benefit individuals looking for part-time or supplemental work. However, the unpredictability of shifts and lack of guaranteed hours can lead to financial instability and make it difficult to plan for the future. It does not secure a minimum weekly hours; employees are only paid for their work hours.
A full-time contract involves working a set number of weekly hours, typically 35-40. Employees on full-time agreements are entitled to benefits such as sick leave, holiday pay, and healthcare coverage. It also offers a reliable income, making it easier to plan for expenses. However, longer working hours may lead to a poorer work-life balance.
In continue getting info about the common types of employment contracts, the next is part time employment. These involve working fewer hours than a full-time contract, usually less than 30 hours per week. Part-time employees are also entitled to benefits, but on a pro-rata basis, depending on the number of hours worked. However, making a livable income on part-time hours alone may be challenging.
A temporary contract is for a specific period, usually to cover a particular project or busy period. Temporary employees are entitled to certain benefits but may not receive long-term benefits such as retirement plans. However, they don’t provide job security and benefits like permanent contracts.
A permanent contract offers job security and stability for employees as it is an open-ended contract with no fixed end date. Employees on permanent contracts are entitled to health insurance, sick leave, and retirement plans.
In most cases, permanent employees also have the right to notice and severance pay if their employment is terminated. However, leaving a permanent job and changing careers may be difficult without sacrificing these benefits. You may download a permanent employment contract sample copy here.
Like a temporary contract, a fixed-term contract is for a specific period. The length can vary, typically from one to three years. Employees on fixed-term contracts are entitled to benefits and may have the option to renew their contract at the end of the designated term. However, they don’t offer long-term job security and benefits, and the uncertainty of not knowing if the contract will be renewed can be stressful.
Are you looking to sign a new employment contract but unsure where to start? Forms.legal can help with our free employment contract forms that you can use to kickstart your journey to securing your employment commitments.