Contracts of employment

Filed Under: Recruitment & Contracts - Guidance Notes | Published on: Monday, 06 February 2012 11:51 AM
1. CREATING A LEGALLY ENFORCEABLE CONTRACT

To create a legally enforceable contract the following conditions must be met:

One party to the contract (usually the employer) must have made a formal offer to the other:

  • The other party to the contract must have accepted that offer
  • Both parties must have formed an intention to create a legally binding arrangement
  • There must be consideration, usually the payment of salary in exchange for work
  • The terms of the contract must be sufficiently certain

A contract of employment can be entered into formally by:

  • Signing a written contract
  • Exchange of correspondence
  • Issuing a statement of main terms and conditions

A contract can also be entered into informally, by:

  • Course of conduct
  • Oral agreement
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