A Comprehensive Report on Managing Human Resource Employment Contracts

This report provides a detailed overview of various employment contract types within human resource management. It begins by defining employment contracts and then delves into four primary types: permanent full-time, permanent part-time, zero-hour casual, and fixed-term temporary contracts. For each type, the report offers examples of how organizations utilize these contracts, along with a thorough discussion of their respective advantages and disadvantages. The analysis includes benefits like career advancement and flexibility, as well as drawbacks such as potential career stagnation and unpredictable working hours. Real-world examples are provided to illustrate the practical application of each contract type, offering a comprehensive understanding of their implications for both employers and employees. The report concludes with a summary of the key findings and implications for effective HR management.

Managing Human Resource

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Different type of contracts...........................................................................................................3
Task 2...............................................................................................................................................8
Organisations using different contractual models........................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
An employment contract refers to contract of employment which is used in labour law in
order to attribute different responsibilities and rights between parties who can bargain. It is
usually a contract between employer and an employer (Pinna and Ibba, 2018). The following
report consist of different types of employment contracts along with various examples in which
organisation uses these contracts. All the advantages and disadvantages of each of these contract
is also mentioned comparing all these contracts. The report also consist real-life example of
organisation who are using contracts for their employers and gaining certain benefits with the
help of it.
Task 1
Different type of contracts
The contracts in an organisation are generally determined by the hours one is working.
But it is not always sure that the case is similar. Also it is necessary before signing anything that
all the options available to employees are understood well by them. Below mentioned are
different types of employment contracts:
Permanent full-time contracts: A full-time permanent contract is most common type of
employment contract in full time used by an organisation. These contracts are generally offered
for various permanent positions in an organisation. It is usually set out for employees on the
basis of their salary and hourly wages (De Cuyper and Isaksson, 2017). There are a number of
different details that will be included in a full-time contract which include holiday entitlements,
parental leave allowances for employees, pension benefits for employees, and also statutory sick
pay leaves for employees. In a full-time contract there is no set for a minimum number of hours
that is required to be work by an employee. However there are some of the employers who
recognise a full time work for a week which consists of more than 35 hours.
Examples:
 Working as a support worker in dimensions UK Ltd is a permanent full-time contract.
The organisation have provided advertisement in which they refer that they will be

paying 9 pounds per hour to the full time employees. They also do not require any
experience or support and they will be training the employees themselves.
 Another example can be taken of a business development manager for Buchanan Search.
The organisation specifies that they will be paying £23,000-£40,000 per annum. The
location is also stated London for the employee and the employer is required to join the
London office and grow their business there.
Advantages: Are a number of benefits provided to the employee who go for permanent full-
time contracts. They are receiving annual leave and also leave for six days which is not allowed
to part-timers usually. They can also get planned for holiday, short breaks in organisation. An
employee who is using permanent full-time contract also has advancement opportunities in their
career (Guest and Isaksson, 2019). The company also provides insurance benefits to the
employees who are working full time rather than those who are working part-time in an
organisation. The salary as well as schedule of employees working in full time is fixed which a
great benefit is for their lifetime at it helps them in managing their personal and professional life
balance.
Disadvantages: It is often seen that employees who is working full time often becomes
career stagnant. This is because they are comfortable with their pay and the workplace
environment and they do not look for good opportunities which is available for them in the
market. It is hard for an employee working in full time employment to realise their true potential.
It is often seen that they get used to a job and do not want to be creative and work similarly
throughout their lives. The CV of employees in permanent full-time contract become boring as
they do not have various experience and also if they have to search for a new job it is very
difficult for them to find one suiting their needs and requirements.
Permanent part-time contracts: In a permanent part-time contract the employer is required to
work for few were contracted hours as compare to a full-time employee. It is generally seen that
they also have a permanent position in the organisation due to their contracts but there are
usually some details mention in their contracts which are different from that of full-time
employees. It is often seen that the number of hours they are working and schedule to work for
organisation is clearly less than that of the full time employees. It is often seen that organisation

can also provide them with an option to work overtime whenever it is decided by organisation or
the employee (Krausz and Stainvartz, 2017).
Examples:
 Various examples can be taken such as a design technology teacher for product designing
in Rotherwood design. The job is based on per day and the employee will be paid
hundred to 1 £50 per day. The location is also mentioned in Manchester and it is a
permanent part-time contract. Time it is mentioned that the employee will be working
four days a week and the days may vary as per their convenience.
 Another example can be taken of a temporary administrator remote working. The
employee will be paid on hourly basis from 8 pounds to £10 per hour. The duty will be
having different hours on different days such as four hours someday and five hours some
days in a week. In this way the employee will be working part time for the organisation.
Advantages: Advantages of using a part-time contract is that it helps organisation in
attracting applicants from huge range of employment pool. It is a great way to retain the
employees who are valued and those who do not want to work for full time with different
organisation (Tsuru, 2017). It also helps employers to reduce the cost through reducing the staff
in an organisation. This is a great way to make sure that organisation are having enough human
resource while peak period. This provides organisations and employees with more free time and
flexibility which is a great way to balance professional and personal life for employees. It also
reduces tardiness and absenteeism in an organisation. Also enhance their employs morale by
providing them employment.
Disadvantages: Organisations may also suffer some disadvantages due to part-time
contract which include understaffing at sometimes. Organisation finds it difficult to schedule
their meetings and coordinate between various products if they’re hiring employees at part-time
contract. Measurement of working hours as well as performance of part-timers in an organisation
is difficult for the management. The income and benefits that can be provided to employees are
usually less in such type of contract. The employee career advancement is highly affected
negatively in such contracts. If an employee is working as a part-time employee they are usually
considered to be less committed towards their work. It is often seen that organisation face

difficulties in assigning the rest of the duties and responsibilities of an employee is to different
people when they’re working as a part time employee.
Zero hour casual contracts: Zero hour casual contract is an agreement which states that the
employer is not obligated to provide a worker with any minimum number of hours. It is also
known as casual contract. This suggests that the employee or worker is not required to accept the
employment of hours that are offered to them (Golding, 2020). However also employer is not
having any obligation to offer work and they may offer the work to employee based upon their
own needs. Zero our contract basically means saving money for the organisation. In this the
business is not obligated to provide the employees with various benefits that are provided to full
time employees. It is also a great way which helps the organisation to increase and decrease their
size of work force in order to quickly meet the demand in the market.
Examples:
 There are a number of organisations like hotels and restaurant sector which are using zero
our contract. There are hotels and restaurant which have to serve their guest on particular
events. They need catering staff as well as decoration staff on these events. They enter
into zero over casual contract with these employees as keeping them employed for the
whole year is not required by organisations.
 Other example can be taken of education sector where some lecturers and professors are
hired on the basis of zero our casual contract. These are basically used for special lectures
which are not required on regular basis for students and universities pay them only for the
hours they are providing services for these institutions.
Advantages: One of the major advantages of using zero our contract is that they are very
flexible. They are very appealing to the employees who are requiring flexibility in order to turn
down the work whenever they do not have time in the schedule. There are also huge
opportunities available in zero hour contracts as most of the company do not prefer full-time
contract. These are good way for employees to earn extra income. It is a great way to earn and
work in more than one company for the employees who do not wish to work for full time.
Employees can earn their income and boost it with various jobs at a time.

Disadvantages: Disadvantage of zero hour contracts include unpredictable hours. It is
often seen that one cannot plan their life around zero our contract because they can get work in
last minute and it is not ideal for every employee. It is also seen that social life of people suffer
due to over contract as they cannot work in advance. It is a truth that people get opportunities for
extra hour but also the companies who are using employees under zero over contract pay them
less. These employees struggle to pay their bills which are a great disadvantage for them. Along
with this the pressure on the employees were working on zero hour contract is specifically high.
Fixed term temporary contracts: There are a number of times when an employer wants to fill a
job role for only temporary period of time. In such cases they are using fixed term temporary
contracts. There are a number of different fixed term contracts but they are usually set for
specific date or specific completion of task only (Bernstein, 2019). In such cases the employees
are provided a contract with fixed term for a temporary period of time. Usually fixed term
employees will be paid the same way that the normal or full time employees or paid in the
organisation. The amount of tax and national insurance is also similar to those of the permanent
employees in the organisation.
Examples:
 There are a number of organisations which are using such employment contracts for
example there are employee who are working as software developer for certain
companies only for a set period of time. They develop certain software for a company
and then switch to another company.
 Other examples can be of an advertisement developer. In these cases promotional tools
are developed by an employee for a certain organisation and they are only working on a
certain campaign for fixed period of time. Once the campaign is released and launched in
the market the employer does not have any work with the organisation and their contract
is over.
Advantages: There are a number of advantages for employees working in fixed term
temporary contracts such as they can gain various valuable experiences while working in a good
job. It will help in enhancing their CV for future opportunities. They can also earn more from
these kind of contracts. As there are a number of companies who are hiring people for short term

in order to work on specific projects. The work that is gained in such contracts is also very
interesting and people may find it a great way to work. It also helps employees to gain flexibility
in their working and managing personal and professional life can be beneficial for them. In this
way employees can also avoid any long-term commitment with an organisation and they can
easily switch to any different organisation whenever they require.
Disadvantages: Along with all these benefits there are also certain disadvantages of fixed
term temporary contracts. It is often seen that these are flexible and do not provide long-term
security to employees who have a family and regular bills to pay. It is also seen that employers
are spending most of their times in hunting for jobs and they are always in between switching
their roles and jobs. When an employee is working with such contracts it is difficult for them to
gain promotion as they are not in the organisation for a long period of time (Birchall, 2020). Also
when looking for different job roles are permanent jobs recruiters can judge such employees
differently which is not beneficial for them. It is often perceived that employees who are working
under such contracts cannot commit to their work which is a bad influence on their career.
Task 2
Organisations using different contractual models
Tesco
Tesco is an organisation dealing in retail sector. They have a huge grocery stores present in
various parts of United Kingdom throughout the world. The organisation is providing a range of
different contracts to their employees in order to deal with different needs of the business. Ways
in which different contracts are utilized in Tesco are mentioned below:
 Tesco is effectively using full time employment contract for most of their employees.
They require salesperson and managers in their stores on a regular basis and it is
necessary that they enter into permanent full-time contracts with these employs in order
to make sure that there are always enough human resource present in their stores to attend
to customers and meet their requirements.

 Tesco is also using permanent part-time contracts in order to make sure that they have
employees in their store after eight hours duty of the permanent full-time contract
employees. The permanent full-time contract employees continue their duty from 9 AM
to 6PM. After these duties are over there are permanent part-time contract employees
who are then serving the customers in their stores. Tesco usually pays higher to such
employees as they are providing duty at night hours. These employees can also work
overtime during the day if they require to earn more.
 Tesco also uses fixed term temporary contracts. These are meant for the employees who
are working on logistics of Tesco. There are a number of goods that are to be carried
from one place to another on a regular basis (Mansour and Hassan, 2018). These
consignments are provided to different employs for a temporary period of time and are
known as fixed term temporary contracts. It is necessary for Tesco to make sure that they
have contracts with these employs as they require logistics on a regular basis.
Marriott international
Marriott international is a American multinational diversified hospitality business. They
manage different franchisee and have a broad portfolio of hotels throughout the globe. There are
a number of employees required in the organisation on a daily basis. They enter into different
contracts with their employees in order to make sure that they are effectively fulfilling all the
requirements of their guest (Fornasier, 2017). Below mentioned are some of the ways in which
different employment contracts are used by Marriott international:
 Like every other organisation Marriott international also have a permanent full time
employee contract. This is the most basic contract which is used by the company. They
require employees for housekeeping, front desk, security, restaurant and so on on a
regular basis. In order to fulfill all these need Marriott international management enter
into permanent full-time contract with their employees.
 There are a number of employs who are working in the hotels and premises of Marriott
international throughout the globe during the odd hours. These include the employees
who are working at night shift. This will also include the front desk staff, housekeeping
staff, security and so on. Working in hospitality sector it is necessary that Marriot

international it is affectively providing their entire guest with services 24×7. In order to
fulfill this requirement they enter into permanent part-time contracts with a number of
employees who make sure that the guest in hotel are satisfied during any odd time.
 Marriot international is also effectively making use of zero hour or casual contracts.
There are a number of times that some events are held in the organisation. These may
include conference, wedding, birthday parties and any other such gathering. During such
time the requirement of human resource in the premises of hotel increases. In order to
fulfill all these requirements zero hour casual contracts is used by the management. They
effectively enter into such contract with employees who can help the management at time
of need. They require more people in security, kitchen, decoration as well as
housekeeping. The front desk staff is also increased during the time of any event or
celebration in the hotel due to which the employees with home organisation have entered
into zero hour casual contract are brought in to use.
With the help of above mentioned detail it can be analysed that there are organisations who
are using a mixture of all the contracts of employment. They are taking benefits from these
different contracts in order to make sure that all their objectives and goals are met in stipulated
time period.
Conclusion
With the help of above report it can be concluded that employment contract are necessary
for the organisations in order to make sure that all the roles and responsibilities of employer and
employee are clear. Every organisation is using different types of employment contract based on
the work they want from the employees. Organisations can easily analyse all the benefits and
drawbacks of different type of employment contracts and use the one which is most beneficial
for them to fulfill all their objectives.

References
Books and Journals
Pinna, A. and Ibba, S., 2018, July. A blockchain-based Decentralized System for proper handling
of temporary Employment contracts. In Science and information conference (pp.
1231-1243). Springer, Cham.
De Cuyper, N. and Isaksson, K., 2017. Employment contracts and well-being among European
workers. Routledge.
Guest, D.E. and Isaksson, K., 2019. Temporary employment contracts and employee well-being
during and after the financial crisis: Introduction to the special issue.
Krausz, M. and Stainvartz, N., 2017. Employment contracts and psychological contracts in
Israel. In Employment contracts and well-being among European workers (pp. 103-
117). Routledge.
Tsuru, K., 2017. Reforming the regular employment system: Toward a new norm of job-specific
employment contracts. Social Science Japan Journal, 20(1), pp.59-72.
Golding, G., 2020. The origins of terms implied by law into English and Australian employment
contracts. Oxford University Commonwealth Law Journal, pp.1-29.
Bernstein, A., 2019. Employment contracts: getting them right. Nursing And Residential
Care, 21(8), pp.470-473.
Birchall, N., 2020. New rules for employment contracts from April 2020-are you ready for
them?. BDJ In Practice, 33(3), pp.34-35.
Mansour, M.S. and Hassan, K.H., 2018. Job Security and Temporary Employment Contracts:
Theories and Global Standards (Vol. 9). Springer.
Fornasier, M., 2017. Employment contracts, jurisdiction. In Encyclopedia of Private
International Law (pp. 625-632). Edward Elgar Publishing Limited.