Different Types of Employment Contracts and Their Advantages and Disadvantages

MANAGING HUMAN
RESOURCES

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAINBODY ...................................................................................................................................3
Analyse four different types of model or contracts of employment, including advantages and
disadvantages of both employers and employee.........................................................................3
Demonstrate practices of companies how and why they use different contractual methods with
appropriate examples..................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Staffing refers to hiring of eligible people in a company for a particular job role. In
management it is defined as process of hiring employees on the basis their skill & knowledge
afterwards offers them a specific role of job accordingly. This current report is carried on
discussion of various employment contract that a company use to hire people for performing
specific function or activities (Sharma and Sharma, 2017). This is the part of staffing, in which
each and every individual get right, role and responsibility according to the talent, ability, skill
and specialisation for which every employment contract posses merits and demerits with relation
to both employee and employer that they agreed. For the same it will explains four different
kinds of employment contract i.e. permanent full time, part time, Zero hour casual and fixed term
temporary contracts. Furthermore it explain how and why company use various methods of
contractual approaches with the help of two UK companies i.e. Tesco and ASDA.
MAINBODY
Analyse four different types of model or contracts of employment, including advantages and
disadvantages of both employers and employee.
Employment contract refers to a formal agreement that specifies the working relationship
of a firm and an employee. It permits to both parties about their obligations and the conditions of
employment and all these obligations are mention in contractual terms. It is not limited with the
expectation and compensation as it is executed for a specific period of time (Rees and Smith,
2017). In which it includes some laws such as minimum wages, safety & security law, no
discrimination at workplace etc. for which there are four types o0f contract that take place in
between employee and employer. All these are discussed below with advantages and
disadvantages:
Permanent full time contracts:
Full time contract of employment refers to no end of date and which are based on
permanent position of employee within company. It is a last longer as an employee wants to
work in a company. In this types of contract, employees get all kinds of welfare that are
mentioned in contract which includes pension benefits, paid leave, sick leave etc. for the same
employees perks and the benefits varies from company to company.

Advantage for employee:
In permanent full time contract, employee get all benefits on the basis of permanent staff.
In this they get all kinds of benefits and perks that are mentioned in contract i.e. flexible working
hour, payments terms, role, responsibilities, equal rights along with all these benefits, employee
have opportunity of career development with job security (Guest, 2017). As well as if an
employee wants to end the contract earlier then they have to serve notice period before one
month in company. All these thing are clearly mentioned in contractual law for a specific period
of time.
Disadvantage for employee:
In this employee get bound with all rules and norms mentioned in contract and through
which they have to follow all terms and condition even if they are not willing to accepted. They
do not have any other option to disagree. In this employee need to follow the orders of their
employers along with this they are not the part of flexible working hour. They have to complete
their mentioned working hour in any case. In this employee have limited potential of earning by
which sometime employee feel frustrated.
Advantages for employer:
In this employer have opportunities to maintain the retention level of employee by
providing benefits and perks at permanent basis. And the permanent employee will create a
fondness of commitment to their employees which bring loyalty to employer towards employees
for job security permanent contract employee are bound to perform task for a particular period f
time that will gives benefits to employer in terms of turnover ratio of employees. As all aspects
are clearly mentioned in contract law that all employees need to follow.
Disadvantage for employer:
As employers are bounded in order to provides perks and benefits to all employee and
that will increases the overall cost. In which it involves paid leave, sick leave casual holidays,
safety along with security, health insurance card etc. which needed massive cost that is the
portion of contract of permanent employees.
Permanent part time contracts :
In this employment contract, employee is bounded to work for a few hours in a week
instead of full time for this they will be considered as part time workers. In this employee are
paid on the basis of working hour whereas in permanent contract employee get salary on