Employment Law: Case of Max and Creative Advertising Ltd.

RUNNING HEAD: Employment Law
Employment Law

Employment Law 1
Contents
Issue.................................................................................................................................................2
Rules................................................................................................................................................2
Application......................................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Employment Law 2
Issue
The given case focuses on Max, an advertising executive, who has recently started working with
Creative Advertising Ltd. on the acceptance of employment offer from the company. During
negotiations, the company made a promise regarding offering an immediate access of a generous
employee share scheme. However, the final contract signed by Max had no mention of such
term. Later on, Max also discovered a company policy that allows the employees an access to
such employee share scheme after the completion of two years in the organization.
Rules
An employment contract can be defined as an agreement that take place between an employee
and the employer that specifies the terms and conditions of the contract. Both duties and duties
of the employers and employees are contained in the employment contract (Cartwright 2016).
The employment contact covers the terms and conditions that are derived from a number of
sources including:
 the written and oral terms or express agreement,
 implied terms by law associated with the relationship between employee and employer,
 good faith and duties of fidelity,
 terms implied by the practice or custom of a specific industry or business (Buddelmeyer,
McVicar, and Wooden 2015, 257).
The parole evidence rule provides that the parties who have reduced their agreement to a final
written contract are prevented from making the introduction of other evidence at a later stage as
evidence having different intentions then the contract terms. However, there are some exceptions
to this rule. This means that the evidences are admitted in cases where the formation of the
contract has some defects, terms of the contract are ambiguous, there are certain problems with
the consideration, condition required to occur before the performance of the contract (Tsui 2015,
160). The prevention of introduction of other evidences is due to the reason that the parties have
reduced their agreement to a final contract and it is the decision of the parties themselves to leave
such evidences out of the contract (Epstein, Archer, and Davis 2014, 49).