Different Types of Employment Contracts and Their Advantages and Disadvantages

Managing human resources
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Compare & contrast different employment contracts & analyse their advantages &
disadvantage for both employees and employers...................................................................3
CONCLUSION...................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Staffing is a process that includes hiring of eligible candidates in a organisation. It is a basic
activity that consists of recruitment of employees according to the present level of skills
knowledge matching with the over-all job description (Shen and Kogan, 2017). Present report
deals with the different aspects of employment contracts that Are part of the staffing process in
any organisation. Employment contract has the own benefits and limitations that have to be
managed according to the particular type of contract.
MAIN BODY
Compare & contrast different employment contracts & analyse their advantages & disadvantage
for both employees and employers
Employment contract is an agreement that is type of a formal agreement with specifies the
overall conditions of relationship that is present between both employer and employee but is not
limited to the compensation (Lelièvre, 2017). A contact basically provides the certain specific
rice obligations that are part of the contractual terms. All these provisions have to be according
to the different types of laws like minimum wages act or the anti discrimination act. There are
usually two types of contact that take place between employer and employee when is identified
as expressed contract that is explicitly agreed between the employer and the employee.
Full time contacts:
Full time contacts are those that are according to the permanent position of employee in
Organisation in the contact there is expectation of all the benefits that are part of this permanent
full time contract. It includes the benefits such as pension benefit statutory sick pay and other
paid holidays. The Perks and allowances are varying according to the type of organisation
(Fernandes, 2020).
Advantages for Employees: Employees are getting benefits according to the status as permanent
staff. If employee is willing to end the contract anytime soon then they has to serve a minimum
notice period of 30 days. Employees in these contracts get all the benefits that are working as
roles and responsibilities employment rights payment terms are clearly part of the specific tenure
of employees.
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Disadvantage for Employees: Employees are bound by the contract and they have to agree to all
the terms of contract even if they are not willing to some of them.
Advantages of Employers: Employees are generally bound to work for a time period of 12
months as they are part of the contract and they are not liable to leave before the specified time.
There is a written statement that consists of the overview of various aspects of employment
contract (Tangermann and Grote, 2017). All the provisions are mentioned before hand and it
includes the minimum level of holidays for the specific deduction. So there is no conflict
between the employer and employee on higher demands on part of employee.
Disadvantage for employers: Employees are bound to provide all the benefits to employees that
sometimes lead to enhancement in overall cost. Eating cloves benefits in terms of sick leaves
annual leave short breaks insurance benefits health like disability benefits for the family
coverage benefits in situations of accidental death. This leads to high cost scenario that is part of
permanent employee contract.
Permanent Part time contracts:
The major difference between the full-time contract and the permanent part-time contract
is that part time contract consist of few specified as compared to the full-time contract. Similar to
full time contacts these are positioned for permanent and are offered according to the specified
number of hours at a contributed by a particular employee.
Advantages for Employees: Employees posses advantage as they are having all the rights that
are similar to other staff members in terms of sick pay or holiday allowance. This type of
employment contract is highly flexible as employees may pursue other interest courses,
obligations or studies according to their specific interest.
Disadvantage for Employees: Employees have to specifically work for minimum number of
hours that is 35 hours every week. Even if employees are working for part-time they have to
comply with all the rules and regulations as a permanent employee.
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