Explain The Nature Of The Contract Of Employment 2 / 5

there are generally no formalities involved in forming the contract of employment

However - the Employment Rights Act (ERA 96) says a written document outlining the main terms of employment is needed within two months of the date of commencement of employment.

The main terms to be covered are:

  1. Job title and description

  2. Length of notice period

  3. Names of both parties and commencement date

  4. Rate and method of calculating pay

  5. Frequency of payment

  6. Holiday pay entitlement and rates

  7. Hours of work

  8. Disciplinary Procedures

Source terms of a contract of employment

  • Custom and practice

  • A collective agreement between the union and the employer

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