Managing Human Resource: Types of Employment Contracts

MANAGING HUMAN
RESOURCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK1.............................................................................................................................................3
Permanent full time contracts......................................................................................................3
Permanent part time contract.......................................................................................................4
Zero hour casual contract.............................................................................................................5
Fixed term temporary contract.....................................................................................................6
TASK 2............................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource management is a strategic approach to the effective management of
employees in a company which helps them to win in marketplace and derive competitive
advantage of the same. This helps in maximising performance of employees by the way of
serving strategic objectives of employers. This is concerned with systems, policies, regulations
with primary concerns with management of employees. Employment contract is contract which
is used in labour laws to attribute various right and responsibilities between various parties to
business operation and there bargaining power. It is basically between employer and employee of
any company which defines contract of service by employees to its employers in regards with
compensation which can be said as salary for the time being it serves. Present report will address
to different types of contract of employments such as permanent full time, part time and others
with its advantages and disadvantages to both employer and employees and will demonstrate
how different companies use mix of different contractual modes.
MAIN BODY
TASK1
Permanent full time contracts
Permanent full time contract is defined as contract which are unlike fixed term or casual
term which will remain valid until either of both the parties that is employer and employees
chooses to end their relationship which can be by varied means. It helps in assuming some
employees that this contracts are valid for years in between 1-5 years but lays down the
expectation on basis of grounds that states that contract will get renewed and company accounts
to follow the same. This contracts are also termed as indefinite contracts. Companies and
employers tend to invest their valuable resources in permanent employees by actively recruiting
and hiring top talent, integrating and training them for the managing operations of company and
by offering benefits that are highly substantial. It is being generally said that full time employees
work for hours varying from 35-40 hours a week (Work,2017).
Permanent full type contract possess various advantages and disadvantages for both
employer as well as employees some of which are it helps employees in career development
opportunities which shows employees that this isn’t just a job but a career for themselves which
also in turn helps employer of the company not to put extra efforts and burn cash by recruiting

and hiring employees that do not stick around, where it is better for business invest in employees
who can contribute in making future of company. It helps in keeping top talented people on the
basis of long term which helps employees to learn and develop new skills and grow their career
which in turn helps employers to determine productivity out of employees to perform
challenging task for in dynamic situations. It also helps in providing job security where in worse
scenario people are losing jobs it ensures employees a sense of safety for job and stability of
having permanent job which is highly attractive to people. It relaxes and not lead to stress in
minds of people which guide them to practically and emotionally invest their efforts to serve for
company and helps employers to achieve common desired goals of company. It also results in
increasing employment engagement which boost up there morale and helps in determining
satisfaction in performing their role (Arestis, Ferreiro, Gómez, 2020).
Disadvantage of permanent full time contract is it is of greater liability in nature where
although it provides clarity by outlining various terms of agreement, it make bot the parties liable
for greater damages if they violate upon the conditions of serving the contract in unfavourable
manner. It states that employer and employees need to be very careful on terms of contract which
are hard for them to meet upon. It is of disadvantage as it accounts to more of administrative
work such as health policies, various plans given by employer to its employees which is time
consuming and requires lot of efforts which ensures managing of employees which contributes
towards the growth of organisation as well as human resource department.
Permanent part time contract
This are the contract between employer and employees of company where employees tend
to work for fewer number of hours as supposed to full time employees. . It lays down number of
hours this employees are scheduled to work per week which is clearly mentioned in terms of
contract and also lays down various option of earning more by doing overtime when and if they
want it to do depends upon there flexibility. This allows part time employees to hold position as
of permanent employees as contract lays down as many of the things that are same in nature and
relatively matching with full time contract. It states that employees work for ongoing and regular
hours, but fewer them employees who are working for full time. This employment lays down
more flexible schedule for employees to work according to their availability, commitment and
comfort level which also allows them to continuously look for opportunity outside without
wasting majority of time on performing a particular job. Generally it lays down that part time