HR Contracts: Advantages, Disadvantages, and Organizational Practices

This report provides a comprehensive analysis of different types of employment contracts, including permanent full-time, permanent part-time, fixed-term temporary, and zero-hours casual contracts. It explores the advantages and disadvantages of each contract type for both employers and employees, considering factors such as job security, benefits, flexibility, and administrative burdens. The report further examines how organizations utilize a mix of contractual modes to meet their specific needs, offering insights into staffing strategies and the implications of different employment arrangements. The report also covers the importance of understanding the legal and practical aspects of each contract type to ensure effective human resource management and organizational success. Finally, the report provides a clear and concise overview of each type of contract and its implications.

Managing Human Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Advantages & disadvantages......................................................................................................3
Examples of practice from two different organisations showing how and why they use
different contractual approaches.................................................................................................7
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource is playing important role for an organisation as it is playing number of
roles which associated with the development, reinforcement and enforcing change for long term
sustainability and higher growth of organisation. Human resource management acts an an
essential unit of any organisation irrespective of its size and scope as this department have
responsibilities to deal with many aspect like compensation, performance management, safety
and wellness, compensation and more (Armstrong and Taylor, 2020). For an HR practitioners
staffing is acting as most important element as it allows them to recruit right individual for right
job which will automatically enhance effectiveness and productivity of both entity and
employees.
Present report involves discussions on various types of employment contract in addition
with its advantages as well as disadvantages for both employer and employees. In addition to
this, manner in which entity take advantage of mix contractual modes to accomplish needs of
organisation are also covered in this report.
MAIN BODY
Advantages & disadvantages
Contracts are of different types that include permanent part-time contracts, permanent
full-time contracts, Fixed term temporary contracts and Zero-hours casual contracts. All these
contracts posses their own set of disadvantages and advantage which is essential to be effectively
understand by both employer and employees in order to use them. With having deep analysis of
merits and demerits of these contracts associated parties can implement them in more effective
manner.
If it is talked about permanent full-time contracts, it has been evaluated that this contract
involves wide range of advantages which is related to parental leave, pension benefits, job
security, holiday entitlements, career development opportunities and more (Banfield, Kay and
Royles, 2018). Job security is most important advantage of this contract as in this individual are
having assuring for job and a regular source of income. This sense of security encourage them to
contribute their contribution and invest themselves emotionally in entity goals and objectives in
more effective manner. Furthermore, other benefits that are associated with this contract is
attendant to health insurance, paid time off, development and training and more. In addition to

this, permanent full-time contracts also facilitate individual to maintain effective work-life
balance along with many career development opportunities that has been provided by
organisation in order to increase employees competencies for accomplishment of organisational
objectives with higher efficiency. Along with this,
While this contract is also having some sort of disadvantages for example more
administrative work, greater liability and more (Barrena-Martínez, López-Fernández and
Romero-Fernández, 2019). These disadvantages are having tendency to negatively affect both
employer and employee. In context with greater liability it has been underlined that if there is
negligence or violation being done from any side being of employer or employee in terms with
liability to bear great damages. Thus, it is important for employees and employers to assure that
they abide all the requirements of the contract.
In Permanent part-time contracts is quite similar to full time contracts and the basic
difference is in terms of working hours. In this a part time employee has performed its work
within less than 35 hours in a week. The time shift, work and its agreed amount is required to be
mentioned in a visible contracts. However, there is a certain difference in terms of work time and
it is varied on the basis of offered options. It is also be beneficial to an arrangement under which
the workers get a right as similar to full time employee. These benefits and rights is not limited
in terms of holiday, pension, training and development and many other facilities as well. It also
offer a flexible schedule to an individual that is suitable to the appropriate commitments (Boella
and Goss-Turner, 2019). A permanent part time employee is an individual who has worked while
managing certain regularity over ongoing period of hours but it is quite lesser then the working
time period of a full time employee. The part time employee get similar kind of accessibility
under some entitlements as a full time and permanent employee but the pro rate is dependent on
the working hours.
There is certain advantage of part time employee as in many states it is not essential to
offer sustained benefits to employee. In this individual is hired at lower cost rather than paying a
good and viable wage. As per the human resource management sustained amount of benefits is
offered to part time employee as well that is dependent on specific laws and regulations. It is a
flexible and comfortable arrangement in which usually work is processed for about 30 hours in a
week. It basically covers absolute income as per the parallel involvement of overall health and
stress, family time, transportation cost and many others as well. It is beneficial to employer too

as in this they are able to attract wider pool for employment, the employee retention is more
valuable, employer cost is reduced without reducing staffing, flexibility within working life that
maintain sustained balance (Brewster, Mayrhofer and Farndale, 2018). It enhance employee
morale, commitment, productivity, involvement and motivation that reduces rate of absenteeism.
On the other hand there is some disadvantages as well for employer and in this under
staffing is increases, might have create difficulties while conducting or scheduling projects and
meetings, it is not easy to manage and measure working hour and its performance over certain
period of time, induces negative impact on the career advancement of employee, the function and
duties of employee need to reassigned over continuous time period and it is a time taking
process. In relation to employee as well there is few disadvantages such as part time employee
not able to spend appropriate time with its subordinates thus it is difficult for them to maintain
strong relationships and connection with ordinates. The ability of keeping balanced level of
efficiency within working is not adjusted as per compared to full time employee.
“Zero-hours” casual contracts is adequately suitable for certain scenarios at where an
individual must have committed towards working. It is basically not a legal term and also be not
accepted by all the organisations. It is also be referred to the casual arrangements of working in
which working hours is not guaranteed. It is also known as “ad hoc contract” or “casual worker
contract” that is induced for more than one employer (Collings, Wood and Szamosi, 2018). In
this employee are also be entitled towards national minimum and national living wage or for an
annual leave as well. Under this contract there is no regulation and obligation on employee about
offering working hours. As per consideration of this contract the employee is classified as
workers and also not get legally entitled to protection from unfair dismissal, redundancy pay,
statutory notice of termination of employment is also be minimised, no right to request about
flexible working, unpaid time off. In addition the workers are statutory employment right such as
rest break, statutory about minimum paid holiday, whistle-blowing protection, health and safety
protection, and safety from discrimination and many other aspects as well.
There is few advantage of zero-hours casual contracts as well in which balanced level of
flexibility is induced as per the fluctuation of business working that is completely dependent on
workload. As per work load employer need maximum staffing and for this they have allowed to
cover balanced events while remaining agile. It is used while experimenting in new marketplace
through which certain level of surety is addressed about higher volume in terms of work. It also

assist worker to mitigate the risk and have paid on the basis of need and requirements. If an
individual is not performing its task and actions affordability and with simplicity then they didn't
get paid for it (Denhardt and et. al., 2018). Thus in this straight forward relationships in terms of
financial aspect is developed without getting entitled on the additional rights as like statutory
notice period and of redundancy payments, maternity leaves, sick leaves etc. It produces flexible
working patterns that has positive impact over staff retention and its performance along with
productivity. It is a contract that is developed on the basis of workers choice as it provide clear
comfort and flexibility that produce better commitment about caring for its own dependents. It is
also be suitable for inexperienced workers as they have gain appropriate understanding of
working on the basis of reliable employment. In this retired and partially retired individual get a
permission to generate and develop their own income as while pursuing the work as per its
interest.
There is few disadvantages as well such as it is completely unpredictable for the
employers as they are not able to accept these kind of working style. It develop certain risk as
workers somehow not able to perform its function as per the availability of work. For this
advanced notice is served so as to avoid the rate of complex situations. It also develop
uncertainty about the permanent state as in terms of financial planning and designing that
induces long term stability in adequate mode (Gattiker and Larwood, 2019). It produces lack of
control over the productivity level of workers as an employer didn't stop the worker to not get
worked under other employer as even for its competitor as well. It develop a condition of direct
dismissal and a claim for its right.
“Fixed-term” temporary contract is under which an organisation and an enterprise hired
an employee for about some particular period of time. It actually doesn't provide routine job but
it is a job that is offered as on the basis of temporary format. It is usually based up for an year but
along with this get renewed as after the expires of time and it is completely dependent on the
basis of requirement. In this employment contract an employee is not get hired on the basis of
payroll of the business. Thus the payment of employee is being fixed and getting advanced as till
the time of expires. Moreover, it is not provided for the routine jobs and offered to jobs that is
temporary. It is duly signed up by both the parties over a specified period of time for example
some IT companies have hired the employees on the basis of contractual agreements. In this
employer is not always be aware about the laws that is provided or offered to employees.

It includes some advantages as it is more useful while covering sustained period of
maternity and sick leave for long time. In this specified job is funded that usually provide and
undertake specific task and activities. It might have covered some seasonal work along with its
right. Most of the employers make adequate usage of fixed term contract as in sort of
probationary period as in order to match up the working credibility of workers and to measure its
effectiveness within the certain period of time (Järlström, Saru and Vanhala, 2018). In this
employer as develop a budget that is strictly followed so that labour cost is predicted with
easiness.
There is few disadvantages as well as it is not easy to measure sustained prospect about
the short contract as it is quite a permanent option and also be an attractive aspect as well. In this
employer has a right to terminate the contract unless the contract is committed to gross
misconduct. In this employer pay some amount for to left some time and under this circumstance
its cost is getting varied on regular basis. It is a contract that is not applied within agency, work
experience placement and apprentices.
Examples of practice from two different organisations showing how and why they use different
contractual approaches.
The contractual approaches is proposed while introducing a clause in sovereign contracts
that is used to address maximum number of inefficiencies in debt markets. The contract based on
employment and its agreement is dependent on different basis such as nature, structure, size,
scope, accessibility of human resource and working capabilities (Meyer and Xin, 2018). It
provide certain ease and comfort to an organisation as in order to process different legal
formalities systematically. It is actually a binding agreement in between two or more than two
individuals and in this one is enforced to maintain legalities. The example of two organisation
reflect how and why contractual approaches is used and it is as explained below as:
Google is an American multinational technology company that is having a specialised
within internet related products and services. The company also offered online advertising
technologies, cloud computing, search engine, hardware and software services. It is one of the
most biggest company in US as in terms of information and technology, Facebook, Apple,
Amazon and Microsoft. It was founded in 1998 by Sergery Brin and Larry Page as while pursing
their Ph.D. at Stanford University in California. Google uses value-based pricing strategy and it
is completely dependent on value of product that is perceived by customers. Company is having

a larger potential customer base thus they need wider employee base as well. There is about half
of the employee of Google workers are temporary, contract or vendor based.
On the basis of these contracts Google has phase varied range of employment that usually
separate each individual working basis. The company is able to make use of several staffing and
contractual firms in order to receive higher attention within the past year. They also get reeled
internal turmoil instead of labour issues through which gigantic staff get adequate direction about
working standards (Nankervis and et. al., 2019). In relation to these contracts more of the
workers get missed from the famous benefits and perks that is designed and developed to
enhance business reputation among all over the world. Google also uses internal documents in
order to plan overall project and to store certain information as well. The company takes the
decision on the basis of standardised measures such as about data security and it is notified
through temporary staff in which market accessibility and its performance is managed as per
working.
The real employment status and its approach is designed while addressing certain facts
that is based as per suitability and requirement. As per the demand of marketplace Google helps
its workers to maintain certain stability and liberty that produces better clarity in sustained
manner. Its temporary staff is to manage social media and email signatures as they have a
contract with other firms as well such as Vaco that support google and its flow of services and
market engagement as well (Noe and et. al., 2018). Google also develop new contract that is
evolved around pentagon's evolved clouds as it disproves the fear of massiveness among
working standards. In addition company also worked forward with the strategy of cost cutting as
it is used to navigate a strong slump in terms of advertising and it is developed due to the
pandemic conditions (Google Rescinds Offers to Thousands of Contract Workers, 2020). It
restricts more of an individual who has shown its interest towards the temporary and contract
working. In this hiring and its investment is getting slows down as it is processed by making
clear planning towards new starts of employment. In this 2000 people get affected globally and
these are those who has signed its contract with different agencies. Google get employs more
than 130,000 number of contractors and temporary workers to embrace work force and it is
outnumbered as compared to full time employee and it is around 123,000.
The other example is of Amazon, that is an American multinational company which is
completely based on technologies. The company has maintained clear focus about to enhance e-

commerce, digital streaming, artificial intelligence and cloud computing. An organisation is also
being referred as one of the most influential cultural and economical force within the world
(Papa and et. al., 2018). The culture of marketing is being so stable that energized the
competitive spirit and zeal so that pleasant and happy surround is developed over continuous
period of time. Amazon has hired thousands of workers as about 50,000 in India of the basis of
contractual workers under which different operations are fulfilled and delivered on the basis of
delivery networks. It also include part-time flexible workers as well that assist to make, pick,
pack, deliver and ship different services to the customers on direct basis. It is the most efficient
prospect under which significant changes and modification is addressed (How Amazon Aligns
Employee Experience and Business Results, 2020). It advances logistics operations such as
mandatory guidelines about face covering, daily body temperature checking, enhancement in
frequency and intense cleaning so as to ensure that better clarity is induce within working
surround. The company is facing higher turnover and maximised performance that usually boost
and motivate the job seekers in systematic mode. Amazon make appropriate usage of
expectations alignment at where workforce is lined up to perceived actual experiences.
As per the hiring of employees Amazon make explicit promise to with its employee about
the employment such as compensation, performance, working hour and other agreements that is
more often represented in the form of written or verbal form (Stewart and Brown, 2019). The
company has announced to generate more of opportunities to advance network. In this provide
different benefits under employment such as medical, vocation and other facilities that is
applicable to adequate requirements.

CONCLUSIONS
As from the above report it is concluded that human resource and its management is also
be an essential prospect for the business as under this productive amount of changes and
modification is induced over continuous period of time. In this different set of task and activities
is induced by the business so that long term sustainability is attained with perfection.
Furthermore, there is different kind of employment contract that is used by the business and that
is as like Permanent full time contract, Permanent Part time contract, Fixed-term’ temporary
contracts and Zero hour contracts. It assist the business to make suitable contract with the
employee so that moderate amount of changes is addressed as by enhancing productivity level on
constraint basis.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management. Oxford
University Press.
Barrena-Martínez, J., López-Fernández, M. and Romero-Fernández, P.M., 2019. Towards a
configuration of socially responsible human resource management policies and
practices: Findings from an academic consensus. The International Journal of Human
Resource Management. 30(17). pp.2544-2580.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Collings, D.G., Wood, G.T. and Szamosi, L.T. Eds., 2018. Human resource management: A
critical approach. Routledge.
Denhardt, R.B. and et. al., 2018. Managing human behavior in public and nonprofit
organizations. CQ Press.
Gattiker, U.E. and Larwood, L. eds., 2019. Managing technological development: strategic and
human resources issues (Vol. 1). Walter de Gruyter GmbH & Co KG.
Järlström, M., Saru, E. and Vanhala, S., 2018. Sustainable human resource management with
salience of stakeholders: A top management perspective. Journal of Business Ethics.
152(3). pp.703-724.
Meyer, K.E. and Xin, K.R., 2018. Managing talent in emerging economy multinationals:
Integrating strategic management and human resource management. The International
Journal of Human Resource Management. 29(11). pp.1827-1855.
Nankervis, A. and et. al., 2019. Human resource management. Cengage AU.
Noe, R.A. and et. al., 2018. Fundamentals of human resource management. McGraw-Hill.
Papa, A. and et. al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management practices.
Journal of Knowledge Management.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
ONLINE
Google Rescinds Offers to Thousands of Contract Workers, 2020. [Online] Available through:
<https://www.nytimes.com/2020/05/29/technology/google-rescinds-job-offers-to-
contract-workers.html>.
How Amazon Aligns Employee Experience and Business Results, 2020. [Online] Available
through: <https://www.entrepreneur.com/article/290790>.