Managing Human Resource: An Analysis of Employment Contracts

This report provides a comprehensive analysis of different human resource contract types. It begins with an introduction to managing human resources and the concept of employment contracts. The main body then delves into the specifics of various contract forms, including permanent full-time, permanent part-time, zero-hour casual, and fixed-term temporary contracts. For each type, the report outlines the advantages and disadvantages for both employers and employees, offering a balanced perspective on the implications of each contract. The report examines job security, employee morale, career development, flexibility, administrative burdens, and potential conflicts. The report also discusses the suitability of each contract type for different business scenarios and industries. The report concludes by summarizing the key findings and providing a comparative overview of the different contractual models.

MANAGING HUMAN
RESOURCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK1.............................................................................................................................................3
DIFFERENT FORMS OF CONTRACT.........................................................................................3
Permanent full-time contracts......................................................................................................3
Permanent Part- time contracts....................................................................................................4
Zero hours casual contracts.........................................................................................................5
Fixed term Temporary contracts..................................................................................................6
TASK2.............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Managing human resource refers to the strategic approach to effective management of
people in a company which in turn helps the company to get and gain business advantage.
Managing human resource ensures in maximising employees performance by the way of serving
employers strategic objectives. It is primarily concerned with management of people within the
company, which also highly focuses on systems and policies of company. An employment
contract refers to the contract between employer and employee of the company. It is defined as
contract of service by employees to employer in regards with some compensation on part of
employer to employees of company. It is contract in which employee places services at disposal
of company or another person that is employer. Present report will brief on different types of
contract of employment and analyse its advantages and disadvantages to employer and
employees and demonstrate mix of contractual models used by different companies.
MAIN BODY
TASK1
DIFFERENT FORMS OF CONTRACT
Permanent full-time contracts
Unlike fixed term or casual contract, permanent contract definition is contract that will
not expire, but will remain valid until either of the parties that is employer or employees chooses
to end the relationship. This contracts are also termed as indefinite contract as well. It can be
interpreted that some employees of company may receive contracts valid for one, three, five
years but they lay down on expectation that they will be renewed and company abides with the
same. Employers of the company tend to invest their resources in permanent employees by
means of actively recruiting top, high talent, by integrating and training them in company and
providing them with substantial benefits. It is generally regarded that full time contractual
employees work 35- 40 hours in a week (Hur, 2017).
` There are many advantages and disadvantages of this type of contract on part of employer
as well as employees such as- It provides job security to employees where the stability of having
permanent job is very appealing to employees. It eases with their mind ad allow them to invest
themselves emotionally and practically into the business which in turn helps employers to

achieve common goals of company with consistent pace and in manner which increase it
organisational efficiency (Paul, Darity, Hamilton, 2018). It helps in increasing employees morale
and boost up engagement of employees in a firm. It helps an individual with career development
opportunities where it ensure that this is not just a job but a career for themselves where they are
path of continuous learning and acquiring new skills and knowledge which helps in strong
foundation of employees to support any uncertain things which can come up in its way. It also
helps employer in manner to get employees who can build towards future of company, instead of
burning efforts for those and recruiting and training employees who does not stick around.
Permanent contract keep top talented employees around long term basis which helps employees
to develop new skills and grow their career in relevant areas of expertise (García Mainar, Green,
Navarro Paniagua, 2018 ).
Disadvantage of this contract is it ensures greater liability, where it will provide the
clarity by outlining various terms of agreements, it may result in employer liable for greater
damages if there arises situation of violation of contract (Walters, Zarifa, Etmanski, 2020). It is
required by employees and employers to be very careful and not to agree on term which they
cannot meet. It accounts to more administrative work as it relates organising things such as
health insurance, retirement benefits, saving plans, which are being supplied to permanent
employees by employers where growing business need to ensure and make sure that its Human
resource department grow with the same pace and which helps in meeting goal of the company
more efficiently and effectively.
Permanent Part- time contracts
It is a contract between employer and employee where part time employees work fewer
contracted hours as compared to full time employees. However they generally hold position as
permanent employees and the contract contains as many of the details that are same and
counterparts with permanent full time contract. It states that number of hours they are scheduled
to work per week is to be clearly visible within the contract but also includes option for
employees if they want to work for extra hours that is there overtime, if and when they desire it
to be done in their own way (Dillender, Heinrich, Houseman, 2020).
Benefits of part time employment includes more flexible schedule, allowing employees
and individual to fit their work in accordance with the commitments they have made outside,
which allows with the opportunity for individuals to try for new roles without giving vast or

majority of their time to a particular job. It states that permanent part time employees is someone
who works regular and ongoing hours, but fewer hours a week than someone who is working full
time. Generally part time employees work less than 38 hours a week, who have regular patterns
of hours to work where it also ensures to them with granted entitlements such as sick leaves,
annual leaves on pro -rata basis according to their working hours. Unlike casual employees they
are guaranteed with ongoing employment and are required to give and receive prior notice to the
end of their employment
Advantage of having part time employees is that it helps employers in bringing great deal
of flexibility in terms of changing situation or circumstances where for example in situation
where crisis come it is hard for company to manage and maintain full time workforce, where part
time employees can be more efficient as to meeting and improving with the changing needs of
business dynamics. One of the benefit of having part time employees is that it has diversity of
employees who have different viewpoints, thought process and different way of thinking which
can helps companies in meeting up with various challenging tasks (Dieckhoff, 2016).
Disadvantage of having part time contract is that there may be difficulties in scheduling
meeting and coordinating project as different employees work accordance to their flexibility of
time which create misunderstanding and confusion in business operations which decrease the
productivity and focus of both employer and employee to achieve their common goals. It also
leads to difficulty in measuring working hours and performance of employees who work on part
time basis as it keeps on changing which hinders the growth if the company as well. It may also
sometime leads to employees viewed as less committed by colleagues, supervisors and other
which may create conflicts in workplace leading to unfavourable culture that increase
inefficiency of business operations (Bünning, 2020).
Zero hours casual contracts
Zero hour contract is a contract where zero hour employees are entitled to get guarantee
from employer regarding minimum number of work per hour. A zero hour casual contract is
between business and individual where individual agrees to work for business on led down
terms. Under such contract business is not obliged to guarantee employees any set of hours to
work. Zero hours contract work has become a preferred choice for organisation when they are
looking to shed and remove the cost when they are not looking to hire fixed term or permanent.
Companies when enter into zero hours employment contract with its employees, document the

terms of employment. It includes terms related to employment status, place of work,
compensation and various other things. This type of contracts helps companies ensuring clarity
and provides solution for effective resolution of disputes. Such contract provides zero hour
employees with an incentive for considering freelaanching or self- employment as viable career
options (Adams, Adams, Prassl, 2019).
This contracts are suitable when there is unpredictability in the workflow as to the
changing demands and unpredictability in staffing level, where this contracts are used
extensively in creative and retail industries to engage freelance talents from different regions.
This contract is useful to hire workers in per project contract which helps companies to deal with
specific skill and knowledge requirements and various ups and down associated with the project.
For example engaging zero hour employees will be useful in hospitality, catering and leisure
sectors which are used to cover special events, seasonal work and can be with occasions with
busy period demands such as Christmas Shopping and other similar event. It provides
tremendous flexibility for professional employee, which allows them to serve different
employers and not sticking to one, where working in different project also allows individuals
with acquiring new skills and to stay tune and updated with changing market demand. This
contracts are suitable for individual who are wanting to start new business and entering into new
market where often business are unsure of its performances in near future and can’t assure its
suitable employees strength to ensure smooth functioning of business operations.
Key advantage of this contract is it provides with the flexibility of working with one
owns choice where individual can opt to this type of contract without hampering their other level
of commitments which in turn helps other party that can be termed as employer to get there work
done with creativity and innovation that supports its satisfaction level (Datta, Giupponi, Machin,
2019).
Disadvantage of this contract is employees or individual don’t have job security and fixed
income that they can get with their permanent jobs, by adopting to this there are things which
are unaware on part of employees such as when is the working shift and when it is entitled to
future pay cheques (Zero hours contracts: Advantages and disadvantages,2018).
Fixed term Temporary contracts
Fixed term employment is contract in which company or employer hires an employees for
specific period. In most of the case it is for years but can be renewed after the term expires

depending upon the requirement of company and also knowledge and skill set of employees
where the company wishes to retain individual. It is the contract in which employee is not on the
payroll of the company. Under this employment contract the payment and Pay-out is fixed in
advance and is not altered till the term of contract expires. This are contracts which cannot be
given on routine jobs, usually given for jobs that are temporary in nature. It cannot be replaced
with existing employee, if they are on long leaves. (Svalund, Berglund, 2018) This contracts are
signed by parties for a specific period of time. In IT companies, sometimes professionals are
hired on contractual basis to complete a specific projects. Like any other contract or agreement,
fixed term employment contract has provision in which employer can terminate contract on
certain grounds before the due date. It is a contract used for specific task and purpose and for
predetermined duration where the end date is known at outset. This contract are for specific time,
which has been set and agreed in advance. In certain circumstances it may not include an exact
time frame, but will end depending upon how fast specific work or task has been fulfilled and
completed. Fixed term employees enjoys all similar rights as of permanent employees, although
factors such as entitlements of holidays depend on the length of contract. It states depending
upon individual performance and their role, fixed term contracts can also sometime leads to
position of longer(Rosin, 2020).
Advantage of fixed term contract to employees is that it provides with income stream
with real time search for them continues which leads to there productive utilisation of time as
they are also available with the opportrunity that they can be converted as full time permanent
employees if they possess relevant skills and qualification to perform a given task which also in
turn helps employer of the company to reduce its efforts in searching and recruiting top talents
which also helps them in saving lot of cost in terms of posting jobs on various social media
platforms.
It helps fixed term employees to gain relevant experience for new job and adds valuable
things in its resume by which it leads to opportunity of various desired jobs and by which
employers also ensures in getting productivity at workplace and helps future employer with less
efforts to train its employees as they have gained experience (Scheuring, 2020).
Disadvantage is that it does not gives sense of security for employees and leads to feeling
that the jobs are not being respected by the society. It leads to employees not finding it as

attractive as permanent full time which leads to employer in a state where its vacancy will not be
fullfilled as a result leads to delay in business operations that affect profitability of company.
TASK2
The practices of two different organisation that shows how and why they use different
contractual approaches.
Companies like Apple hire full time employees to serve to its long term projects that take
years to complete which in turn support growth and development of company. It leads to long
term employees embedded in culture of Apple, which develop company specific skills and
prepare for better performance in upper management position which helps in them in enjoying
job security in the process of business. Apple hires full time contractual employees to support
day to day functioning of business which account to innovation at workplace which can be
communicated and sold in target market which ensures company for smooth flow of business
operation and meeting the changing requirement of customer needs and wants in dynamic
business environment. By hiring full time employees it helps Apple to create and contribute
towards long term growth as they are highly focused and committed toward achievements of
common goals which leads company to gain competitive advantage over its competitors and to
be at position of market dominance. Company employs permanent full time employees to
support its business operation where employees with diversity can share different thought
process by which they participate in decision making which is highly effective for company and
contribute in success and growth of same (Dailey, 2016).
By hiring full time employees it helps Apple to meet with risk that are challenging in
nature and helps company to outperform its responsibilities and serve the society. For a company
its most valuable resource are its employees which highly lays down foundation for success of
company which is being highly considered by apple as it recruit employees on permanent basis
who are highly talented and meet up with requirements of company in terms of achieving goals
(Permanent Employment Contract,2020).
Apple also accounts to use of Zero hours contract as its biggest advantage is flexibility
which helps company to respond quickly to effective business fluctuation in demands and needs
of its customer which can also be understood as dealing with conditions of unforeseen events.
The company uses this contract in order to meet up with needs of covering a particular event
such as Apple promotional events to launch new products and services such as new series of

iPhone, iPads, MacBook and various other where it hires various freelancer and independent
individual who work on their own and derive result for the same and plays major part in success
of various events (Zero Hours Contracts Explained,2020). Company also account to this contract
and employs individuals to match up and cope up with the absence of permanent employee who
have gone through long term leaves as account to their sickness, maternity and varied other
reason which in turn help Apple to not account and not affect day to day functioning of business
operation as it fill the gap by employing individuals in replacement to existing employees for
time being they do not join and contribute towards smooth functioning of business because of
varied reason. Hiring employees on Zero based contract is relatively cheaper as compared to
permanent employees where company can account to invest in other opportunities which can
help in optimum utilization of resources (Farina, Green, McVicar, 2020).
Companies like Sainsbury’s adopts to permanent part time contract as it helps in cost
saving when it comes to salary and benefits. Its employs part time employees in various stores all
across its business operation as it helps them with the flexibility of working hours where they can
also meet up with their commitments as a result helps company to hire employees with diversity
which helps them with various view- points which contributes toward success of company. By
hiring part time employees Sainsbury ensures its expansion where it extends opening hours of its
stores all across regions, which includes opening on weekends or later in evenings to see what
effect it has on overall profitability and turnover (Dex, McCulloch, 2016). It ensures while trailing
to new hours, or new in- store sales process, part time employees ensures company in great way
of safely testing out with the processes which ensures the business is smoothly functioning.
Company account to unemployment and filling up needs by providing senior citizens, students
and others who are not looking for full time employment and could be matched rightly with the
needs of Sainsbury’s Employment where part time contract ensure in tapping into different age
demographics which can help in getting much wider talents. But it totally don’t depends upon
part time employment as there may be circumstances where there loyalty can be questioned in
regards with employees feeling comfortable with another part time role.
Sainsbury also account to provide fixed term employment where it employs individual
who work for completion of given project or task at Sainsbury which will be terminated on
completion of task. It helps in ensuring company with getting work done on time. It may also
cover a job where funding has been provided to undertake a specific task which is seasonal in

nature. It helps in providing efficiency in resource and there optimum utilisation of same at
Sainsbury’s. It ensures faster and easier completion with the achievement of specific objectives
and lays down great strategy for employers at Sainsbury to see how new employees perform
which can serves as ground for their permanent position or not (Kiersztyn, 2016). This is viable for
company in period of certain season where business is on pick and requires employees who can
perform roles and responsibilities in order to meet up with task assigned to them which in turn
helps in deriving efficiency of business.
Handy's Shamrock model
It states that advantage of a flexible organisation is that it can react to change quickly in
external environment. Since 1990s , firms has examined their value chain and tried to reduce
there workforce to a multi skilled core which is mainly concerned with delivery and creation of
services and products, handy however suggested that organisation just do not consist of core and
the periphery as it can be subsdivided. This model states muti skilled core of professional
technician and managers who are essential for continuity of business. It states that contractual
fringe, because non central activities are contracted out to firms specialised in activities such as
marketing, computing, research and communication and lastly constitutes of flexible workforce
mae up of temporary, part time and seasonal workers (Management theory - Handy's Shamrock
Organisation,2019).
CONCLUSION
From the above report it is being understood that what are wide variety of employment
contract or agreements which lays down certain condition of working between employer and
employees in which both the parties are abide to follow the same to encounter to smooth flow of
business operation. It laid to understanding of permanent full time employment where employees
devote majority of time working for the success of company. It brief on part time employment
which stated which is flexible in nature and where individuals can meet up with their
commitment levels and has working hours less than that of permanent employees as well as their
compensation level. It made to understand what zero based contract are where individuals are
hired to meet up certain requirement such as promotion of new products and various other. It
also led us to understand what temporary and fixed term contract are and briefed on explanation
on how and why organisation uses different kinds of contractual approaches.

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.
Bünning, M., 2020. Paternal Part‐Time Employment and Fathers' Long‐Term Involvement in Child Care
and Housework. Journal of Marriage and Family. 82(2). pp.566-586.
Dailey, S.L., 2016. What happens before full-time employment? Internships as a mechanism of
anticipatory socialization. Western Journal of Communication.80(4). pp.453-480.
Datta, N., Giupponi, G. and Machin, S., 2019. Zero-hours contracts and labour market policy. Economic
Policy. 34(99). pp.369-427.
Dex, S. and McCulloch, A., 2016. Flexible Employment: the future of Britain’s jobs. Springer.
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.
Farina, E., Green, C. and McVicar, D., 2020. Zero hours contracts and their growth. British Journal of
Industrial Relation. 58(3). pp.507-531.
García Mainar, I., Green, C.P. and Navarro Paniagua, M., 2018. The effect of permanent employment on
absenteeism: evidence from labor reform in Spain. ILR Review. 71(2). pp.525-549.
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.
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.
Rosin, A., 2020. Platform work and fixed-term employment regulation. European Labour Law Journal,
p.2031952520959335.
Scheuring, S., 2020. The Effect of Fixed-Term Employment on Well-Being: Disentangling the Micro-
Mechanisms and the Moderating Role of Social Cohesion. Social Indicators Research. 152(1).
pp.91-115.
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
Management theory - Handy's Shamrock Organisation.2019[Online]. Available
through<http://textbook.stpauls.br/human_resources_student/page_21.htm>
Permanent Employment Contract.2020[Online]. Available
through<https://vakilsearch.com/employment-agreement/permanent-employment-
contract>
1