A Report on Different Employment Contracts in Human Resources

This report delves into the realm of human resource management, focusing on the critical role of employment contracts in organizational success. It begins by highlighting the importance of managing human resources as a foundation for company performance and competitive advantage. The report then explores various types of employment contracts, including permanent full-time, permanent part-time, casual or zero-hour, and fixed-term temporary contracts, detailing their advantages and disadvantages for both employers and employees. The analysis includes real-world examples of how companies like Marks and Spencer and Lenovo utilize these contracts. The report examines the implications of each contract type on job security, employee engagement, benefits, career development, and flexibility. It also considers the legal liabilities and challenges associated with each contract. The conclusion summarizes the key findings and emphasizes the significance of selecting appropriate employment contracts to foster a productive and satisfied workforce.

MANAGING HUMAN
RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1- Different employment contracts ......................................................................................3
Permanent full-time contract-......................................................................................................3
Permanent part- time contract......................................................................................................4
Casual or zero hour contracts ......................................................................................................5
Fixed term temporary contract ....................................................................................................6
TASK 2............................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Managing human resource plays a vital role in any organisation as it serves as foundation
for success of the company. It refers to the practice of managing employees in the organisation to
achieve and thrive for better performance. It is a strategic approach to management that is
effective for employees which may helps the company in gaining competitive advantage.
Employment contract is a kind of contract used in employment between employer and
employees that assign various right and responsibilities on part of both the mentioned parties.
Marks and Spencer is multinational retailer based out of UK that specialises in selling clothes,
food and home products under its own label . Lenovo is multinational technology that provides
wide variety of electronic products such as laptops, mobile phones and various others. Present
report will address various types of employment contract and their advantages and disadvantages
to employer and employees and will brief on how and why above mentioned companies use the
same.
MAIN BODY
TASK 1- Different employment contracts
Permanent full-time contract-
It refers to the contract between employer and employees which is subject to no end date
and in which the employment continues until employees quit their jobs or in where certain
condition arises where in employer terminates employees and let the individual go and is being
referred as to permanent employees who work for an employer and are being paid directly by the
employer. It states that employees have no predetermined end date to employment. This is being
defined as contract of employment that will be valid and not expire, until and unless both the
parties such as employer and employees chooses to end their relationship on varied grounds.
Employers of any company tend to invest there efforts in terms of cost and time in hiring,
selecting and recruiting permanent employees and offers training and development to the same
as they devote majority of time serving the company and lays down as the foundation for the
success of the company. This contracts are often termed as indefinite contracts as it accounts to

unpredictability on various grounds that are uncertain in determining the relationship between
employer and employees (Lu, Chen, 2018).
Various advantages and disadvantages of fulltime employment to employer and
employees are it helps employees in providing sense of job security and not a fear of lay off or
an employment with fixed terms as it provides stability of having job under various uncertain
business dynamics that is highly attractive which in turn helps in increase employees
engagement and satisfaction that boost up their morale to perform better and helps employer too
in getting achieving common desired goals of the company. This type of contract serves as
highly beneficial as it helps in providing various benefits such as retirement, gratuity, provident
fund which helps in developing sense of understanding for employees that company values its
employees which in turn leads to focus, commitment, dedication for better performance that
helps employer to achieve goals as being laid down according to the strategy. It accounts to
various career development opportunities that assist this is not just a job as it provides
opportunity to be associated with the same company for years to go (Hur, 2017).
Disadvantage of this type of contract is its serves as greater liability which provides clear
understanding of agreement before entering into the same, where it makes employers liable for
various damages on violation of terms of contract such as not providing adequate and fair
compensation as mentioned in the contract, inculcating culture which is unfavourable and
negative in nature which leads to decreased employee morale and as a result leads with non
performance of employees. It also might leads employees to become stagnant whereby sticking
to one employer can result in hindering and accounting to career stagnations.
Permanent part- time contract
A permanent part- time contract is referred to contract whereby employer employs
employees on regular and ongoing hours of work, but fewer than employees who are working on
permanent and fulltime basis and devoting there majority of hours serving the company. This
contract refers to employees holding permanent position as fulltime employees and lays down as
many details as fulltime contract contains which is being regarded with the hours they work with
the company. It states that number of hours they work and are scheduled to work should be
clearly visible in terms of contract which also lays down condition on there part to work
overtime when they wish and desire it do, which in turn helps in building good image and
accounting to better relationship between employer and employees. It allows flexible working

schedule which allows meeting with the other commitments and searching for various
opportunities to try out new job roles without devoting majority of time and helps in generating
source of income and helps in effective utilisation of time that is being focused in learning and
developing new knowledge and skills. These contracts also helps employees in various
entitlements such as annual leaves, sick leaves and various others which depends upon there
hours of work. It states that permanent employees has a schedule that is being permanent in
nature who work consistently on the task being assigned by the company but work for fewer
hours as compared to permanent employees, they are entitled to same benefits as regards with
permanent employees but at a reduced and decreased rate, which depends upon the hours they
work for the company in a day (Dieckhoff, 2016).
Advantages of part-time employment is it provides with the flexibility in the working
schedule which helps and enables employees to derive focus in completion of task and activities
of the company which in turn helps employers in fostering and accounting to business growth.
Helps in reducing cost of employers without reducing staff members and helps employers to
retain valuable employees who may not desire and willingly to work as fulltime employees as
they regard with maintaining work life balance which in turn help employees in deriving
satisfaction in what they do and helps employers to meet business dynamics such as heavy
business demand and others more productively.
Disadvantage of this is it may unfavourably affect the advancement of career opportunity
for employees when they account to work on part-time basis as a result of which they loss there
huge amount of valuable time on various non - usefulness activities. Its biggest disadvantage is it
creates difficulties for employer to schedule and co-ordinate activities of part-time employees as
it relates to different working hours for employees which is hard for employers to manage
accordingly (Min, Yoo, Oh, 2018 ).
Casual or zero hour contracts
These are the contracts between employee and employer which employer is under no obligation
to provide any minimum numbers of working hours to employees and whereby employees are
also not obliged and accountable to accept any work being offered to them. It states that
employer and employees can sign an agreement when they are available to work as and when it
is being required by them, which accounts and specify no particular hour and time of work.
These contracts are generally scheduled via on call and are often used in promotion of product

and services, catering business, education, agriculture and various others. Zero- hours contracts
are also referred to as casual contracts where it regards with employees requiring accepting any
hours of employment and time being offered to them, it states that however employer are under
no obligation to offer work, as they are attracted to those who accept hours to work offered to
them more effectively and efficiently, rather than those who may get fewer opportunities in
future as they turn down there shift. This contracts are most prominent for those who are
involved in developing their career as freelancer and are with a mindset to work with different
employers ( Adams, Adams, Prassl, 2019.).
Advantages of this type of contract is it serves as flexibility in business operations where
the workload keeps on fluctuating in the business where employer might need employees during
various seasons to cover events which can leads to decrease and increase in the size of workforce
to meet various changing demands of the business and accounts to its dynamic situation. It helps
in growth of as it accounts for new business where it is highly uncertain that how the business
will function as it is being filled with high rate of uncertainty, zero based contract helps in
minimising the risk to taking and having pay for employees than you might not need. It helps in
increasing productivity, retention of employees and provide quality of work. Worker in this type
of contracts have greater flexibility in saying when and how they will work according to their
other laid down commitments
Disadvantage of Zero-hours contracts and casual contract is that it lays down
unpredictability on the side of employer as zero – hours workers don't usually have to accept the
work, where employer might be at a risk where it is not being able to find anyone available to
take on the work which needs to be done. It also serves as unpredictability on part of workers as
it is being very tough to do any kind of financial planning on these contracts, which serves as
means of permanent uncertainty (Ravalier, 2017).
Fixed term temporary contract
As the name suggest this are the contract for fixed term or tenure and which can also be
understood as temporary contracts or limited term contracts which refers to employment
relationship between employer and employees that is on fixed terms and that ends on a fixed
time or a date which is being agreed upon by both the employer and employees. It states that
employer hires employees for a specific time period. It states that it can be renewed after the
term expires which depends upon various requirements of employers in regards with its fixed

term employees. It states that payroll which is being fixed in advance and which can not be
altered till the term expires. It is the contract which is being duly signed by both the parties and
for the specific period of working. Under these contracts also there are various provision unlike
other contracts whereby employer have the power to terminate the same on varied grounds as
they may lead to violation of various business policies before the due date of the contract. These
varied reason could lie from employees committing fraud, using unfavourable means of
developing a culture which is bad for the company, accounting to non contribution and
performance to achieve common goals of the company. It state that fixed term employees are not
entitled to receive as many benefits which are being given to permanent employees(Fernandes,
Ferreira, 2017) .
Advantages of fixed term employment is it might helps employees to deliver high level of
performance by which employer gets attracted and hire the same on the basis of permanent
payroll which in turn helps employers to save lots of efforts in terms of time and save money
where it includes recruiting employees from wider pool of applicants and posting job vacancy on
various portals. It serves as generation of income for individual with real time search for job
continues and helps in bridging on gap with getting more valuable job as it accounts to getting
experience and filling extra in the resume which serves as the means of getting opportunities &
increased chance with selecting with the recruiter which individuals wants to . It helps in
assessing with various strengths and weaknesses of individual and leads to areas of improvement
which ensures building relevancy in areas of expertise for employees(Kiersztyn,2016)
Disadvantage of this employment contract is employees or individuals may not find fixed
term employment as attractive as permanent full-timed employment which leads employer facing
harsh time in getting position being filled and where it also accounts to paying high rate of
amount to get that vacancy being fulfilled by attracting right candidates which in turn leads to
delay in business operations and tasks not getting on time which hinders the growth of the
business.
TASK 2
There are various practices being adopted by the below two mentioned organisation which
suggest how and why these companies uses different contractual modes of employment.
Lenovo accounts and adopts to permanent employment contract as it hire full-time
employees to support to its day to day functioning of business operation as they devote majority

of time towards serving the challenges and risks which comes in the way to business on daily
basis. Company hires full-time employees to account to meet the business dynamics and support
in smooth functioning of business (Paul, Darity Jr, Hamilton, 2018). Company hires full-time
employees to meet with its long term business goals whereby they account to perform various
business activities and projects by taking charge by themselves for the completion of the same
which support development and growth of the company in various business dynamics. Lenovo
also account to hire employees permanently that supports in decision making of various business
operation and accounts to be creative and innovative at the workplace which helps in meeting
business goals more effectively. Company hires permanent employees who are highly trained
and skilled as by the helps of them it gives the company valuable insights of knowing about the
needs and wants of its potential customers and helps in developing products and services which
satisfy there needs and helps company to win in marketplace. Company also hires the same as it
helps in bringing confidentiality of various business strategies which is danger when company
opts for fixed term contract or any other as it relates to facing various uncertainties which can
lead to non privacy of company data (Walters, Zarifa, Etmanski, 2020) .
Lenovo also accounts to adapting zero- hours contract based employment when it
accounts to absence and leaves of existing employees on various grounds such as employee
falling sick because of major diseases, accidents. Holiday trips and various others whereby it
hires employees on the basis of serving with the existing employees responsibilities till the time
they return to company and perform their job roles. Company accounts and hires for this
employment contract when some promotional and product launch event such as Lenovo
launching new product such as its mobile phones, laptops and various other electronic goods
whereby its employs various free-lancers who take on the responsibility on there individual part
and perform duties in there relevant areas of expertise and serves as the means for the success of
the events (Avram, 2020). Company accounts and employs zero-hours employees to meet its
changing business demands whereby it helps in maintaining needs and wants of potential
customers in more efficient manner. Company also adopts to this as it wants to reduce the cost
which is being associated that with hiring full-time employees and whereby it wants and needs to
account to flexible business operation and completion of projects on the time (Zero hours
contracts: Advantages and disadvantages,2018).

Marks and Spencer accounts and hires part-time employees as it accounts to high rate of
productivity in business operations, consistency with the workloads' and helps in generating
employees loyalty. Company accounts to this as it helps in business expansion across different
regions whereby it allows company to tap into different geographical regions and expanding the
same which helps business to start extending the business hours and, opening stores on weekends
and later in the evenings which helps to understand the overall impact on increase in business
profitability and sales revenues. This also helps in trialing these new hours, or a new in stores
sales process whereby company employs part-time employees to assist in getting the best way to
safely test out the process which ensures proper and smooth flow of business operations by
accounting to various staffing needs that is being fulfilled by part-time employee. Company
accounts to hire part-time employees to account to cost saving business operation as it is less
expensive to pay for fewer hours of work as compared to full-time employment where it also
states that paying for fewer hours of work make it affordable for Marks and Spencer to hire more
experienced professionals (Dillender,Heinrich, Houseman, 2020). Company hires part-time
employees as it is relatively at a low cost and getting work done with the help of flexibility
which ensures meeting up with their other commitments and helps in smooth flow of business
operations . Company hires the same to provide opportunities to individuals who are still into
there education and people who are retired who can easily take out the time to perform duties
which benefits the company to maintain with workloads. This provides company with the
opportunity of attracting right talent in the company.
Marks and Spencer also accounts to fixed term employment contract as it provides with
great flexibility and meeting the changing needs and supports business dynamics. It is being used
by the company to evaluate individual performance for certain period which helps in company in
assessing individuals strength and weaknesses which in turn help company to know about
whether the individual is being fit for permanent fulltime role or not. It helps company by the
means of filling short term vacancies which ensures business operation are on constant pace and
which does not affect the functioning of the same which allows flexibility in the business
operations (Svalund, Berglund, 2018). This is viable for the company for the seasonal period
when the demand is fluctuating which suggest that when the company is looking for specialist
and professionals, it is required to hire fixed term contractual employees and serves as the best

choice to cover existing employees leave with fixed term employees who perform the duties of
existing employees and let business operations don't get disturbed.
CONCLUSION
From the above report it is being understood that managing human resource plays a vital
role for company to account for the success of the company which lays down the foundation for
the same it is being understood that there are various employment contracts which serves as the
relationship between employers and employees such as permanent fulltime employment which
relates to devoting majority of time to meet the business goals, part-time employment which
regards working fewer hours as compared to fulltime employment, it also made to the
understanding of what is zero hours casual contract where employer is not obliged to offer
minimum working hours and which can be used as best means for freelancing business. It made
to the understanding of what are fixed term employment contract that serves for specific period
and lastly made to the understanding how two organisation uses the same in different business
practices and how it is being benefited to them.

REFERENCES
Books and journals
Adams, A., Adams, Z. and Prassl, J., 2019. Legitimizing Precarity: Zero Hours Contracts in the
United Kingdom. In Zero Hours and On-call Work in Anglo-Saxon Countries (pp. 41-
65). Springer, Singapore.
Avram, S., 2020. Zero-hours contracts: Flexibility or insecurity? Experimental evidence from a
low income population (No. 2020-10). Institute for Social and Economic Research.
Dieckhoff, M., and et.al., 2016. A stalled revolution? What can we learn from women’s drop-out
to part-time jobs: A comparative analysis of Germany and the UK. Research in Social
Stratification and Mobility. 46. pp.129-140.
Dillender, M., Heinrich, C.J. and Houseman, S., 2020. Effects of the Affordable Care Act on
part-time employment: Early evidence. Journal of Human Resources, pp.0718-9623R2.
Fernandes, A.P. and Ferreira, P., 2017. Financing constraints and fixed-term employment:
Evidence from the 2008-9 financial crisis. European Economic Review.92. pp.215-238.
Hur, Y., 2017. College Education Factors Affecting Permanent Employment of Elementary and
Middle School Teachers 1. International Information Institute (Tokyo).
Information. 20(11). pp.7931-7938.
Kiersztyn, A., 2016. Fixed-term employment and occupational position in Poland: The
heterogeneity of temporary jobs. European Sociological Review. 32(6). pp.881-894.
Lu, H.C. and Chen, M., 2018. WAGE DIFFERENTIAL BETWEEN PERMANENT AND
TEMPORARY CONTRACTS OF FULL-TIME JOBS: AN EMPIRICAL STUDY OF
BIVARIATE EMPLOYMENT DECISIONS. Academia Economic Papers.46(2).
pp.133-183.
Min, H.J., Yoo, T.S. and Oh, S.J., 2018. The Effect of Perception of Creating Shared Value
(CSV) Activity on Job Satisfaction of Non-permanent (Part-time) Employees: Analysis
of the Mediating Effect of Organizational Commitment and the Moderating Effect of
Self-Efficacy. 한한한한한한한한한한,.18(5). pp.612-634.
Paul, M., Darity Jr, W. and Hamilton, D., 2018. The federal job guarantee: A policy to achieve
permanent full employment. Center on Budget and Policy Priorities.
Ravalier, J.M., and et.al., 2017. The influence of zero-hours contracts on care worker well-
being. Occupational Medicine.67(5). pp.344-349.
Svalund, J. and Berglund, T., 2018. Fixed-term employment in Norway and Sweden: A pathway
to labour market marginalization?. European Journal of Industrial Relations. 24(3).
pp.261-277.
Walters, D., Zarifa, D. and Etmanski, B., 2020. Employment in Academia: To What Extent Are
Recent Doctoral Graduates of Various Fields of Study Obtaining Permanent Versus
Temporary Academic Jobs in Canada?. Higher Education Policy, pp.1-23.
Online
Zero hours contracts: Advantages and disadvantages.2018[Online]. Available
through<https://citrushr.com/blog/day-to-day-hr/zero-hours-contracts/>
1

2