Types and forms of Employment Contracts


Before discussing the types of employment contracts. First, let’s discuss what is an employment contract and How Employment Lawyers Perth will guide you in preparing and reviewing this contract.

A legal contract that takes place between the employee and employer is termed an employment contract.

whenever any new employee joins the company. This contract should be duly signed by the employee of the company, giving his concern agreeing with the terms and conditions written in the document. It’s not compulsory that an employment contract should always be in writing.

There are three forms of employment contracts:-

1. Written employment contract –

Most employment contracts are in written form. This legal piece of paper includes information related to salary, employment duration, leave enrichment, notice period, etc. Such forms of contract will help resolve disputes between employer and employee.

2. Verbal employment contract –

A verbal agreement that takes place between employee and employer is termed a verbal contract. In this hiring authoritative offers position and salary verbally. In the same way, if the employee agrees to accept the offer verbally they both come into a verbal contract. A witness should be present at the time of creating the contract to make this contract valid.

3.  Implied employment contract –

An implied contract takes place when both parties do not agree to accept the offer Written or verbal. But they both want to come in a contract for some work. In this case, they both came into the implied contract.

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Types of employment contracts:-

1. Full-Time Employment Contract –

The first and foremost type of employment contract is a full-time contract. Whenever any employee is offered the position of a full-time employee or permanent employee, who work more than 35 hours weekly comes under a full-time contract. This contract includes information related to salary, notice period, leave enrichment, etc.

2. Part-Time Employment Contract

An employee who works less than full-time or an employee who works less than 35 hours weekly comes under a part-time contract. As per the nature of the contract, the employee should get less pay as compared to full-time employees of the same designation. This contract information same as a full-time contract like salary etc.

3. Zero-hour Employment Contract

A type of contract in which employees work on an irregular basis, work only whenever there is work available, and get paid only for the work done. Examples of zero-hour contracts are day laborers or babysitters.

4. Casual Employment Contract

Seasonal or temporary basis worker comes under casual contract. The employee gets paid only for the work done or tasks performed. In this worker gets work on a seasonal basis as per the requirement. In this company is not liable to pay minimum wages to the worker.

5. Freelance employment contract

Nowadays freelance contracts are more in trend. Covid changes everything, today everything goes digital work from home culture is more in trend. Companies prefer hiring freelancers instead of going for full-time employees. In this employee gets paid on a project basis for example designing a website or creating a UI UX design. Employees get paid once the project has been completed.

6. Executive employment contracts

Executive contracts are similar to a full-time contract. This Contract is mostly prepared for senior profile employees. These contracts include information related to salary, perks, or incentives that may usually offer to the executive profile employee.

7. Fixed-term employment contract

As the name suggests, this contract is prepared for a fixed duration. The contract gets terminated once the work is completed. This contract includes the information about the work and the duration to complete that particular work. This contract also includes the number of charges to be paid after the completion of work.

8. Confidentiality employment contracts –

This contract bounds employees from sharing confidential information with competitors of the company like clients’ information or quotation filled for the tender etc. Most senior-level employees have this confidential information with them because they are the ones who are handling the senior management tasks. If any employee is found guilty of sharing confidential information with competitors will send to prison for this.