Different Employment Contracts: Pros and Cons for Employees and Employers

Managing human resources

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Compare & contrast different employment contracts & analyse their advantages &
disadvantage for both employees and employers...................................................................3
Examples of practices from company showing how and why they use different contractual
methods...................................................................................................................................7
CONCLUSION....................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Staffing is a process that consist of hiring eligible candidates in a organisation for certain
specific positions. In management staffing is a aspect that is concern with recruitment of
employees by timely evaluation of knowledge, skills and then offering of specific job roles
according to the present level of skills (Balz, 2017). The present report is based on discussion of
different employment contracts that are part of staffing and then getting right individual for a
right position according to their present level of aptitude, talent, ability and specialisation. Each
employment contract consist of pros and cons for employer and employee according to which a
specified contract is build up between a employer & a employee. According to that there are
some practical examples of organisations where there are specific basis on which employees are
selected for different job roles.
MAIN BODY
Compare & contrast different employment contracts & analyse their advantages & disadvantage
for both employees and employers
Employment contract is a agreement that is a formal agreement that specifies the condition of
relationship existing between a employee and employer and is not limited to expectation and
compensation. This type of agreements are regarded as employment contracts that have to be
executed for a particular time period (Borooah, 2019).
There always exists a contract between employer and employee. A contract provides both
employer and employee certain specific obligations and rights, all the obligations and rights are
mentioned in “contractual terms”. All such provisions have to be according to different types
of laws such as minimum wages. There are basically two types of contracts that take place
between employer and employee. One is expressed terms that are explicitly agreed between the
employee and employer.
Permanent full-time contracts.
Full time contacts are those that are based on permanent position of a employee in a
organisation. In these contracts employees are expected to receive all the benefits that are
mentioned in the contract that includes paid holidays, pension benefits and statuary sick pay.
Employees benefits and perks are different according to company.

Advantages for employee: Employees are getting benefits as permanent staff. If employee is
willing to end the contract earlier then they have to serve a notice period of one month at least in
organisations. Employees are getting full range of benefits under such type of contracts such as
working hours, payment terms, role, responsibilities, employment rights all such aspects are
clearly mentioned along with specified tenure of employees (Brady and et. al., 2016).
Disadvantage for employee: Employees get bound by a contact and they have to agree all terms
of employment contract even if they are not willing to do so. They have to work according to
their employers will and they are not able to be a part of any type of flexible working
arrangement that are present in other different types of contracts.
Advantages for employer: Employees are bound to work for a time period of 12 months as it is
part of contract and they cannot leave before that specified time period (Chung, 2019). There is a
written statement that includes detailed overview of different aspects of employment contract.
All the provisions are clearly mentioned before hand that includes minimum level of holidays,
pay slips with deductions, different entitled leaves. That leads to no future confusion and
employees have to follow all policies that are part of this agreement between employer &
employee.
Disadvantage for employer: Employers are bounded to provide all the benefits to employees that
leads to increase in overall cost. It includes annual leaves, sick leaves, short breaks, insurance
benefits, healthy life, disability benefits and family coverage in cases of accidental death. It is a
massive cost scenario that is part of contract that is part of permanent employees.
Permanent Part time contracts:
The main difference between part time and full time contract is that part time contract of
employment consist of few contracted hours as compared to full time employment contract.
Similar to full time contracts these position are permanent and are offering hourly/salary
according to number of hours worked by employees according to perks and benefits. These type
of contracts are usually great for employees who are having some other commitments.
Advantages for employee: In this type of contract employees are entitled to same rights as all the
staff members like holiday allowance and sick pay. The employment type is somewhere flexible
as it allows employees to pursue interest or gain experiences in a particular sector.