Managing People: Employment Contracts and Their Importance in ASDA

This report discusses the importance of employment contracts in managing people in ASDA, a major retail company in the UK. It explores different types of contracts, such as zero hour contracts, part-time contracts, and term time working contracts, and discusses their advantages and disadvantages. The report highlights the role of employment contracts in maintaining high performance and productivity of employees.

Managing People

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Employment Contracts................................................................................................................3
Zero Hour Contract......................................................................................................................4
Part Time Contract.......................................................................................................................5
Term Time Working Contract.....................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managing people is one of the major functions for any organisation’s top-level
management. Reason is, by managing employees or people within the workplace, a business can
achieve its decided goals in various market segments. Currently the management within different
businesses are taking many innovative steps for properly managing people or employees in
workplace. There are people management is directly link to those activities of a company which
it has taken for systematically maintaining high performance and productivity of its existing
employees or people. This report mainly discusses people management within ASDA. It is one
of the major retail companies of the United Kingdom, headquartered in Yorkshire, England, UK.
Currently ASDA has workforce of 165,000 number of employees. There are some major
employment contracts also have been discussed in this report. Various benefits and
disadvantages of these employment contracts also has been mentioned in this report.
MAIN BODY
Employment Contracts
Employment contracts plays very important role in the ASDA for both employer or
employees. Basically, employment contracts have always signed between two parties, employer
and employee. In these contracts, ASDA has always mentioned such all policies, terms &
conditions, and rules and regulations which employees highly needs to follow during working in
the company (Bernstein, 2019). Generally, there are employment contracts provides legal
support to ASDA and its employees. That’s why top-level management of the ASDA highly
need to consider these employment contracts in its daily operations, otherwise this company can
face various legal issues like, court hearing and penalty etc. Reason is, currently every business
or company in the United Kingdom is responsible to adhere or follow those all laws which the
UK’s government has imposed on various existing businesses. In this situation, employment
contracts are also main part of the United Kingdom’s business law. This is the main reason that,
the management at ASDA always need to consider these contracts in its workplace. On the other
side, these employment contracts give opportunity to a company for systematically managing its

employees or people as well. That’s why employment contracts are very important for the
ASDA. There are some major employment contracts has been mentioned below;
Zero Hour Contract
This is a contract which employees of any organization have to sing so that they are not
bounded to follow what the management is telling them to. ASDA is having a zero-hour contract
for employees who are in production and research and development team so that the pressure on
them is minimum and the employees can have a better functioning for the organization. The
standards and the quality of the products have to match the expectations of the organization
which is why this flexibility is provided to these employees so that there is a better functioning.
There is no time period for which the employees are bound to complete in the organization but
their targets have to be completed on time is what is expected from the employees who are in this
type of contract (Ravalier and et.al., 2019). There are a lot of advantages and disadvantages
which come with this kind of contract in the organization which is going to be discussed in the
further report.
Advantages: There is a sense of flexibility in the organization which is a very good
factor for the employees not to feel pressured for anything. The productivity and the quality of
the products can be affected when the employees of the organization are bound to finish a target
but when they have their freedom as well the organization will be able to achieve their goals as
well on time. The growth of the business is more in the competitive market which ASDA is
having in the market and the company will be able to overcome them faster. This is a good
contract for those who are not experienced and there is a lot of learning which they can have and
the organization can get in these staffs when there is a help required for them which is going to
make the company have a better functioning for them. There will be a better commitment from
the employees who are in this kind of contract because they will be able to give their personal
best in the company. This is a very simple contract for the employees and the employers of the
organization therefore this is used in ASDA so that the reputation of the company can be
maintained and the company will be able to get a competitive advantage.
Disadvantages: When there is a task which needs to be completed and there will be an
unpredictability of the employees if they will come up because they are not bound to the
organization therefore they might not end up coming unless there is a reward provided to them in

the end of the task (Koutsampelas, 2018). This is going to make ASDA spend more and there is
no cost saving on this factor which is very important for the employees of the company. There is
going to be lesser control on the employees who are going to be under this contract which is a
great loss for the organization. The owners will not have a high profit margin and there are
deadlines which would be missed by the organization which is a great loss for the company.
Part Time Contract
In this dynamic world, there are part time contract is one of the most useful employment
contracts in the United Kingdom. Lots of employers and employees in this country are taking
many advantages from this employment contract (Ghignoni, Croce and Ricci, 2018). This part
time contract also has signed between employer and employee. In this situation, top-level
management of ASDA takes lots of advantages from this contract. Currently there are large
number of employees are daily working in the company’s operations. In existing workforce of
ASDA, currently many of employees works in this company on the part time basis. ASDA
already has properly signed part time contract with those employees who are working part time
in its workplace.
Basically, part time employment contract is a licence for a person to work in the ASDA
as a part time worker or employee. In the UK, mainly students use part time employment
contract for part time working in a business or company for earning money while studying. But
ASDA has provided part time job to only such candidates who completely fulfils all
requirements conditions of company by talent wise, education wise, knowledge wise and skills
wise. The top-level management of the company already has created a policy for its part time
workers or employees. In this situation, ASDA sign this contract with only such candidates who
systematically fulfils different terms and conditions of this company (Golding, 2017). While
developing this part time employment contract, ASDA highly need to avoid mentioning such all
terms and conditions which can directly or indirectly violate employment law of the United
Kingdom. On the other side, the company need to make an appropriate part time contract which
an employee can easily sign in employer. This employment contract is really very useful contract
for both an employer and employee. There are some main advantages and disadvantages of this
employment contract has been discussed below;

Advantages: The part time employment contract supports to an employee to make work life
balance, because when an employee works part time, then it can easily maintain systematic
balance between its personal life and professional life. On the other side, ASDA is able gain
effective employees with the support of this employment contract. The company can easily
reduce its employment cost without reducing its existing employees by using this contract. Part
time contract support to that person also who like to work in various locations.
Disadvantages: An employee never earn that salary which has earned by fulltime workers or
employees by singing part time contract with ASDA, because an employee can earn salary only
on the basis of its working hours while part time (Ollus, 2016). On the other side, ASDA need to
provide that same training & development sessions to part time employees which it has provided
to its fulltime employees. In this situation, this is not a favourable and appropriate deal to this
company. A part time employee not able to full focus in its present workplace, because its
mentality doesn’t work as fulltime employees. There are counting working hours of part time
employees or workers is something complicated task for ASDA.
Term Time Working Contract
Human resource management of the Asda Company channelizes the term time working
as one of the employment opportunities in the company. This is an effective employment form in
which an employee needs to serve the company for the predetermined period of time.
Employment condition in this form of employment can be wither full time basis or on the part
time basis. Employees also do not work on a regular basis. The regular planned period in this
employment method is also accounted for normal paid and unpaid leaves. Employee gets all
employment benefits in this method (Ciani, Grompone and Olivieri, 2019). As per the general
rule in case of term time working designed working week must not exceed by 42 weeks. This is a
key condition associated with the term time working. In this employment method number of
working hours in a day is also get fixed even at the initial stage of employment so that no
confusions remains at the later stages. This is a cost friendly employment method which allows
company to operate any specific business operations and in against to that employee gets the
earning opportunities at the big companies like Asda Company. In case of seasonal businesses
this is a key employment method which allows companies to employee work force for some
specific period of time only.

Advantages: This is a cost friendly employment method. Employees get top paid only
for such period in which e actually served his services in the organisation. In Asda Company for
some specific departments company employees’ workers on the basis of term time contract basis.
Company do not employee such employees for the permanent basis in the organisation. As long
as the work gets done such employees also leaves the organisation. On the other side, employees
joins organisation on the basis of term time contract basis are well skilled and efficient in nature
(Marbach, Hainmueller and Hangartner, 2018). Organisations do not need to conduct any
significant skill and employee development activates to improve the skills of such employees. As
the employee joins organisation on the basis of term time contract are well skilled in nature and
they are also experienced which drives them to perform skilful tasks as a part of the employment
opportunities. There are term time contract base employment improves the work culture of the
organisation. Employee joins on the basis of term time contract are well skilled and experienced
which also allows other permanent employees of the company to get to learn different practical
aspects of work.
The above-mentioned points are among the key strengths associated with the term time
contracts base employment.
Disadvantages: This is a risky employment method. Employee joins organisation for the
limited period of time depends upon the completion of work. The time limitation allows such
employees to leak necessary information about the internal structure of the company.
This can be consisted as the key weakness associated with the term time employment.
CONCLUSION
It can be concluded that the top-level management of ASDA is responsible to consider
these all employment contracts in its business environment for properly managing employees in
the workplace. Basically, employment contracts give opportunity to ASDA for increasing own
existing productivity and performance within retail industry of the UK. Currently prime
competitors of the ASDA are also taking lots of advantages from employment contracts. In this
situation, ASDA highly need to use these contracts in its workplace to gain huge competitive
advantage in the United Kingdom’s retail industry. On the other side, this company will be able

to achieve effective employees also by using these employment contracts in its business
environment. Reason is, most employees or workers always like to work in that workplace where
exiting management has completely followed various employment contracts.

REFERENCES
Books & Journals
Bernstein, A., 2019. Employment contracts: getting them right. Nursing And Residential
Care. 21(8). pp.470-473.
Ciani, E., Grompone, A. and Olivieri, E., 2019. Long-term unemployment and subsidies for
permanent employment (No. 1249). Bank of Italy, Economic Research and International
Relations Area.
Ghignoni, E., Croce, G. and Ricci, A., 2018. Fixed term contracts and employers' human capital:
The role of educational spillovers. Papers in Regional Science. 97(2). pp.301-322.
Golding, G. E., 2017. Terms implied by law into employment contracts: rethinking their
rationale (Doctoral dissertation).
Koutsampelas, C., 2018. Non-standard employment in Cyprus: Trends and policy
responses. Cyprus Economic Policy Review. 12(1). pp.41-58.
Marbach, M., Hainmueller, J. and Hangartner, D., 2018. The long-term impact of employment
bans on the economic integration of refugees. Science advances. 4(9). p.eaap9519.
Ollus, N., 2016. Forced flexibility and exploitation: experiences of migrant workers in the
cleaning industry. Nordic journal of working life studies. 6(1). pp.25-45.
Ravalier, J and et.al., 2019. Zero‐hour contracts and stress in UK domiciliary care
workers. Health & social care in the community. 27(2). pp.348-355.