Employment Contracts: Advantages and Disadvantages for Employees and Employers

Managing human resources

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Compare & contrast various employment contracts & the relative advantages & disadvantage
for both employees and employers.........................................................................................3
Examples of practices from organisation showing how & why they use various contractual
methods...................................................................................................................................7
CONCLUSION....................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Staffing is a procedure that is related to iring of eligible Candidates in a organisation
according to specified positions and job roles. In management staffing is a element that is in
concern with the process of recruitment of employees with the timely evaluation of skills,
knowledge and competence according to the available job positions and job roles. The present
report is based on the discussion of various employment contracts that are part of staffing and the
way there can be hiring if right individual for right job roles (Golding, 2020). Employees have to
be hired in every organisation according to their level of skills, knowledge, aptitude and
specialisation. Every employment contract consist of pros and cons of employee and employer
according to a specific contract that is build up between a employee and employer,. According to
which there are some examples that have been drawn in order to hire employees according to the
job roles and vacancies in the organisation.
MAIN BODY
Compare & contrast various employment contracts & the relative advantages & disadvantage for
both employees and employers
Employment contact is the agreement that is present between a employer and the employees and
is nor limited to the expectation or the amount of compensation. It is a type of agreement that is
part of various employment contracts that are to be executed according to defined time period.
There is always a contract that is present between a employer & employee. Such type of contract
is offering the required obligations and rights that arise because of presence of formal
relationships among them in a organisation (Grozdanovski, 2020). These type of agreements are
part of employment contract that are to be executed according to the specific time period.
The type of contract that is present between a employer and employee is determining the specific
rights and obligations. All such right and obligations are part of the “contractual terms”.
Further all the provisions have to be according to the prevailing employment laws in a country.
Such as national minimum wages act 1948 is one such act where the provision related to
minimum wages have to be according to the legal laws that are mentioned in such act.

Permanent full-time contracts.
Full time contracts are the ones that are according to the employees that are holding permanent
position in a organisation. In such the contracts the employees are excepted to revive all the
benefits that are clearly mentioned as a part of contract it consist of provision related to paid
holidays. Benefits of pension (Rasmussen, Bray and Stewart, 2019). Contribution towards
provident fund and the statutory pay leaves. All the benefit of employees and provision of
employee leaves are varying according to each company and deepened on the management of a
organisation.
Advantages for employee: Employees may get benefit as permanent staff members. In this
employees are entitled to provide a one month proper motive before leaving the organisation.
But the positive aspect is that employees are getting full range of benefits in this contract that is
all the provision regarding working hours, responsibilities, roles, employment rights, payment
terms have to be clearly mentioned and further employee tenure has also to be clearly specified.
Disadvantage for employee: Employees are bounded by the contract as they have to agree to all
the contractual terms even if they are not willing, employers can pressurize employee if they are
not able to adhere to any such provision that is mentioned in their contract (Poesen, 2020).
Advantages for employer: Employers are bounded to be in the ingratiation for at least a time
period of 12 months that will lead to lower employee turnover in the organisation. The written
statement will consist of the aspects of employment contracts, minimum holidays and all the
statuary deductions.
Disadvantage for employer: Employers are required to provide all the benefits that may
sometimes lead to enhancement in the cost in organisations. It includes the annual laves,
minimum number of paid leaves, disability benefits and family coverage benefits that are to be
provided in case of accidental deaths. All such extra benefits any lead to higher cost in the
organisation as employer cannot deny such benefits.
Permanent Part time contracts:
The major difference between full time and part time contract is that the employment consist of
few hprs of working that is based on the number of hours mentioned in the employment contract
that is build up at the time of joining of employee. Similar to the full time employees the
position offer to the employees is permanent but the number of working hours is less and the
benefits & perks are offered to employees according to the number of hours which they are