Analysis of Different Types of Employment Contracts and Their Impact

This report provides a comprehensive analysis of various employment contract types within the corporate sector, focusing on their impact on both employers and employees. It discusses four key contractual models: permanent full-time, permanent part-time, zero-hour casual, and fixed-term contracts, outlining their respective advantages and disadvantages for both parties. The report uses Tesco and Amazon as case studies, illustrating how these organizations employ different contractual approaches to meet their business objectives. The analysis delves into the rationale behind these choices, highlighting how these firms leverage different contracts to manage their workforce, achieve strategic goals, and navigate the complexities of employment law. The report concludes by emphasizing the importance of understanding these contracts and the need for careful management to ensure their effective and compliant implementation.

Types of contracts of
employment

Table of Contents
INTRODUCTION................................................................................................................................3
Discuss & analyse four types of contractual models with advantages & advantages &
disadvantages...................................................................................................................................3
Examples of two practice from two different organisations how & why they use different
contractual approaches.....................................................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
Books & Journal:...........................................................................................................................10

INTRODUCTION
In corporate sector, employees and employers have unique relationship with each other.
Employment refers to a paid agreement between both employer as well as employee with mutual
considerations. Contracts are defined as written document which are enacted by law with aim of
getting the work done (Benbaji, 2019). Main aim of this essay is to understand the contracts within
a corporate sector & how they impact upon employment. In this essay two organisations have been
considered which are Tesco & Amazon. Tesco is largest supermarket headquartered in U.K.
Amazon is multinational e-commerce & technology firm headquartered in U.S. They both have
different form of contracts polices according to which they make decisions. This essay comprises
of type of contractual employment, advantages, disadvantages, two different organisation & their
contractual approaches.
Discuss & analyse four types of contractual models with advantages & advantages &
disadvantages
In corporate works, there are various type of contracts which are used by listed two
organisations which are Tesco & Amazon. They both uses different types of contracts depending
upon their firm policy & procedures. The HR manager of these companies make assure that these
agreements are mutually accepted & does not violates the terms & conditions of firm. It is
important for enterprise to make assure that al polices, procedures are mutual understood & agreed
by every one in proper way. So, four type of contracts are explained in which first one is
Permanent full time contracts. It is contract in which an agreement is being carried out under
fixed period of time which is of 35 hours a week. In this contract, employees are hired for
permanent position. Agreement involves s parental leave allowances, SSP which is Statutory Sick
Pay etc. Through such agreements it is easy for employer to implement their change strategy within
a workforce with aim of enhancing work level efficiency(Braganza, 2020).
Advantages for employer
Further benefit is that these allows employers to make decision regrading job role &
responsibilities in proper way. Also, they employee in this contracts get fixed amount of salaries by
employers.
They ensure the job security & permanent acceptance of personnel.

Disadvantages
Employers change their management strategies when ths contract is carried out which impacts upon
their work schedule.
Advantages for employees
Another benefit is that subordinates who are permanent have a fixed time scheduled according to
which they are able to carry out their work.
Disadvantages
This contract is that it is difficult for employee to work for fixed period of time & before that
period subordinate cannot leave the organisation. Both Tesco & Amazon use this contract in their
employment which is mutually accepted by both parties. Individual become stagnant with one
employee, they way of paying perks, amount of work given etc. It become difficult for permanent
employee to leave the job & search for other. One more disadvantage is that CV become in
attractive as well as boring when one is sicked to a particular job.
Permanent part time contracts in which employees are hire as permanent but for specific period
of time for example- half days etc. These contracts are meant for reducing work load of entity by
hiring subordinates in bulk. In this, a commitment (Dangi, 2019).
Advantages for employers
In relevance with Amazon, they too hire part time employees for completion of their work
objectives. With help of these, they are able to achieve their short term objectives in most efficient
way. It is essential to have proper knowledge about these contracts so that to both employer as well
as employee so that problem do not occur in near future. It depends upon both subordinates &
employers whether to carry out this for agreement for longer period or not.
Disadvantages
Then, disadvantage of this one is that the work done by permanent part time employees are not
always reliable which can disrupts the work schedule of other departments.
Moreover, in this employee find it difficult to evolve with other environment in corporate world
which reduces their ability.
Advantages for employees
Main benefit of such contracts is that with help of these work is being carried out effectively &
objectives are achieved in period of time. Another benefit is that through such contracts it is easy to
analyse the work efficiency of a particular individual . Also part time permanent subordinates are
focused & serious towards their job which leads to identification of their inner capabilities and
skills. These employees focus on both personal & professional career which depicts their multi-
tasking abilities (Faherty, 2017).
Disadvantage for personnel

Further, part time personnel cannot focus on both work or their activities which can also leads to
problems/ issues. Such type of subordinates also suffer from mental health diseases due to stress
which affects their work productivity.
Zero hours casual contracts, According to this agreement there is not fix hours of work for
employees .it is a contract between employees and employer in which company provides working
hour as per its need and requirement. There is no predefined working hours for workforce. It
provides flexibility to both workforce as well as organization is in written form that describes
various provisions pertaining to employees right, obligations and so on (Hotvedt, 2018). It is a good
practice for those employees who want to manage their personal as well as professional life in an
efficient manner. In this staff gets salary for the hour they work so that it provides complete
satisfaction to them . In context of Tesco and amazon, it believes in higher employee satisfaction so
that managers of company applies this practice at work place. It helped them to get attract human
resources who are looking for part time opportunities of work. There are a lot of advantages and
disadvantages of this method.
Advantages to employees
It is that it helps to motivate employees as they will be bale to have an efficient work life balance. It
also assists managers to hire qualified staff and new talent who want to work part time along with
studies. There is a good relationship between managers and employees can created with this
method.
Other benefit is that is easy to for them to work according to their own way of work methods. This
enhances level of flexibility within their work.
Disadvantages
It is that it is not suitable for those candidates who are seeking for long term and permanent
employment. There will be lack of interaction and coordination at work place.
Advantages to employers
Due to flexibility, they can get their work done at any time & any place from employees. It is
beneficial for achieving goals & objectives.
Another benefit is that it makes it easy for subordinates to make their own decisions which leads to
working in effective manner (Huws, 2018).
Disadvantages to employers
Apart from this, there is lack of security as it employees might be fired by organization at any time.
So, this is a suitable method but managers need to analyse its negative aspects as well while
applying it in organization context.
Fixed Term contract is an agreement between business entity and work force that defines
condition of employment such as working hours, salary and so on. There is no flexibility in this

approach employees need to follow all the guidelines and instructions. In context of Tesco and
amazon, they applies fixed term contract for its permanent staff. In such agreements, it is easier to
for both parties to understand each other's point of view. Moreover, These fixed term are for one,
two or more than two year. So, it is stated that it is necessary for them to be aware about these
conditions so that all guidelines, conditions are being properly followed.
Advantages to employers
It is that it helps managers to met with the requirement of employees at a particular period of time.
There will be strong coordination between employees within company as they are abide with
predefined rules and regulations. It assist managers to reduce done the conflicts arises at workplace
by defining the employment condition earlier.
Disadvantages to employers
It is that there is a major drawback of flexibility as there are rigours process of working that need to
be follow by both company as well as workforce.
Company will be not able to hire those people who are looking for are efficient and looking for part
time opportunities. With this, managers of organization may not recruit potential new and qualified
candidates who want flexibility in work (Isaksson, 2020).
Advantages to employees
Due fixed term period, they are bound for a specific duration which helps them to be motivational
towards their life and work.
Also, under this subordinates can avoid long term commitment to other & can find for other job
opportunities after expiry date of fixed term contract.
Further benefits are that it become easier for subordinates to get a new work experience by
accessing to new skills & abilities.
Disadvantages to employees
Apart from this, there is no work life balance for employees as they need to follow the pre-defined
agreement. Therefore, after analysis of these contracts it has been examined that it is crucial to have
a proper knowledge about explained contract so that employment process is carried out properly. It
is duty of manager to make assure that all these various types of contracts are being properly
maintained (Kirpichev, 2018). Because if any change is made or problem occur between such
agreements than appropriate form of procedure & presence of both parties is necessary to be
present.
Thus, from above explained several kinds of contracts it is stated that contracts are the way
on the basis of which it is necessary to carry out them in proper way. Moreover, it is examined that
irt depends upon firm to choose or select which type of contract during employment process.

Examples of two practice from two different organisations how & why they use different
contractual approaches
Amazon- It is multinational e-commerce giant & technological firm which deals in ample
number of products & services such as consumer electronics, online hotel, air plane bookings etc.
It has its warehouses across the globe & service centres through they handle & manages their
customers. HR manager of firm uses these contractual approaches with purpose of creating jobs
opportunity & getting their work done in proper manner. So, in relation with chosen entity they use
physical contracts, fixed term contracts approach & permanent full time contracts approach within
their management. By using approaches, entity is able to achieve their goals & maintain work in
appropriate way (Ojala, 2018). These are important so that a commitment is being made between
both parties that everything will be carried out under stated & agreed agreement guidelines.
Rationale for using fixed term approach is that by carrying out this method they are able to
manage every tasks which has been left by old employee. Also, it is often seen that Amazon convert
their fixed term contractual subordinates into permanent one depending upon their work efficiency
& skills. They use this approach when Amazon has work required for a specific period and which
can be on seasonal basis like maternity cover, long term sickness cover or when funding is provided
for a project by clients. In this way, company use this contractual approach in business. Further
method is permanent full time contractual in which subordinates are being hired as permanent
full time personnel. It is beneficial for them as it assist them in making a fixed employment strategy
for their fixed personnel which is used by them as competitive advantage. It is beneficial one for
both parties as job it includes job security. Income security, easily doing work rather than being an
unemployed. So, both of these contractual approaches are being adopted by Amazon with basic
purpose of getting work done at al aspects. Then further comes the physical contract approach in
which a formal relationship is maintained between both employee as well as employers. In this,
main focus is on completing of work on definite given period of time. They not get personal with
each other & focus on their roles and responsibilities.
Tesco- It is largest supermarket situated in U.K. Which provided products & services with
diversified portfolio. It is stated that they to uses various kinds of contractual methods through it is
easier for them to get assigned tasks or assignment in time period. Furthermore, it too leads to use
of correct methods. By accessing to such adapted methods, they manage their work. For example-
psychological contracts approaches are being used by them with regard of which they develop a
informal relationship with subordinates (Reimann, 2017). This helps method helps them in
accessing to mutual expectation of both parties. In this, informal relationship is being carried out by
employer with employees. They make assure that expectation of both are met with at all aspects.
Another method is that basic pay of employees. IN context with chosen firm, they are not entitled

to pay for employee doing overtime subordinate is working in public holidays. Besides the
employment contract, Tesco make ensures that a high level of legal compliances is being
established between both interested parties. It is important for HR to have a deep knowledge of
such methods so that it leads to use of correct workforce at workplace.
Reason for using contractual approaches
Contractual approaches are used by organisation with aim of experiencing all types of
relation with employees. It is crucial to have strong & appropriate form of legal contracts so that
expectations between both parties are clearly well defined. It delivers a open access in work
environment, business which leads to managing of relationship & protecting asset of enterprise.
for example- Amazon adopts the physical contractual approach to maintain & a formal relationship
with their subordinates with purpose of accomplishing their goals. These approaches also governs
staff & employers that how work is needed to be carried out in organisation. Under these legal
considerations & compliance decisions are made properly. So, main rationale for using these
contractual approaches of both Amazon & Tesco is discussed below-
Enforces compliance- By carrying out these approaches both firms are able to engage with their
staff in well organised way through which they are able to manage their practices, terms, conditions
which depicts policies & procedures of management. It leads to formation of strong formal
connection between both parties (Shackleton, 2017).
Dispute management- In every enterprise, disputes & problems arises, which causes a disrupting
environment at work pace. This is main reason of selecting approaches of contracts methods
because when there written documents defining role of every employee & employer solutions are to
disputes are being done effectively. In relevance with both Amazon & Tesco, they often encounters
many disputes arises amongst staff members, subordinates. Through managing these contractual
methods, they are able to examine & analyse all problems which are being faced which are solved
by revising or checking guidelines of contracts signed by both parties.
Basic functioning- This is another rational for adopting contractual methods because it assists all
department of enterprise to work in proper manner without facing any issue or problem. It too helps
HR of both enterprise to make decisions, strategies, regulate new policies, simplify the business
structure, to meet expectation & demands at all level. It also leads to doing work in such a way so
that it help in proper functioning of all work related concepts. Therefore, it is analysed that it is
essential to be aware about such methods which results in using of contracts in most efficient way
with appropriate considerations (Sunder, 2018).
The explained rationale depicts that these are main reason of choosing of contractual
approaches through which companies hire skilled & talented workforce for getting the work
completion within a specific period of time. It is evaluated that with HR manager is entitled to be

aware about these contracts properly so that if any problem occur solution is being presented.
Furthermore, is is crucial to be aware about these method which helps in making decisions properly.

CONCLUSION
After analysis of above essay, it has been concluded that a contract is essential part of
organisation which is needed to be managed in proper way. Without forming a contract, it is
chances of occurring of problems is more. So, in this essay discussions have been made about
several types of contracts such as permanent full & part time, fixed contracts, zero hours, and more.
Then approaches used by enterprise like psychological physical contracts has been discussed

briefly. It is necessary to for both subordinates & organization to get mutually agreed when making
a contract. Therefore, it is essential to use these approaches which help of which it become easier to
be aware about how & why contracts are important for business. In every entity, contracts are
heterogeneous in nature depending upon their HR policies or procedures. It is necessary to analyse
that these contracts often take place between business parties, employers & subordinates, etc.
According to this they are able to implement necessary guidelines, terms & conditions within a
contract.

REFERENCES
Books & Journal:
Benbaji, 2019. Contract Law in a Just Society. Theoretical Inquiries in Law, 20(2), pp.411-432.
Braganza, 2020. Productive employment and decent work: The impact of AI adoption on
psychological contracts, job engagement and employee trust. Journal of Business Research.
Dangi, 2019. Are Smart Contracts the Future of Contracts?. PM World Journal, 8.
Faherty, 2017. The Amazon Monopoly: Is Amazon’s Private Label Business the Tipping Point?.
Hotvedt, 2018. The contract-of-employment test renewed: A Scandinavian approach to platform
work. Spanish Labour Law and Employment Relations Journal (SLLERJ), 7(1-2), pp.56-74.
Huws, 2018. Online, on call: the spread of digitally organised just‐in‐time working and its
implications for standard employment models. New Technology, Work and
Employment, 33(2), pp.113-129.
Isaksson, 2020. Psychological Contracts and the Employment Relationship. In Oxford Research
Encyclopedia of Psychology.
Kirpichev, 2018. Non-Classical Paradigms in Contract Law in the American, European and Russian
Legal Doctrines. Journal of Advanced Research in Law and Economics, 9(5 (35)), pp.1660-
1666.
Ojala, 2018. Types of temporary employment: an 8-year follow-up of labour market
attachment. Social Indicators Research, 138(1), pp.141-163.
Reimann, 2017. Psychological contract breach and employee health: The relevance of unmet
obligations for mental and physical health. Revista de Psicología del Trabajo y de las
Organizaciones, 33(1), pp.1-11.
Shackleton, 2017. Working to Rule: The Damaging Economics of UK Employment Regulation: The
Damaging Economics of UK Employment Regulation. London Publishing Partnership.
Sunder, 2018. Prosocial or selfish? agents with different behaviors for contract negotiation using
reinforcement learning. arXiv preprint arXiv:1809.07066.