Contract of Employment/Contract of Service


Contract of Employment/Contract of Service : This is the legal contractual relationship between the employer and the employee. It is normally formed when the employer offers remuneration and other benefits to the employee, in exchange for the performance of specified work. The contract may be written and formal or unwritten and informal, and the terms can be expressed or implied. 'Best practices' in industrial relations, however, demand that the contract be written and formal. In many cases, the 'job offer letter' is the extent of the written formal contract. In whatever form the contract might exist, the courts, in seeking to ascertain its legality, will seek to establish the employer's obligation to pay wages and maintain a safe system of work, and the employee's obligation to obey the employer's lawful instructions, to be faithful and honest in service, and to exercise care and skill while performing work
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