Contract LawPurpose of an Employment Agreement.

March 17, 20210

All employees should have some form of written employment agreement – it can be simple or detailed depending on the needs of your business. What works for you depends on the nature of your business, the number of staff you employ, and the frequency with which staff join and leave you. All employees should be given a formal written employment agreement that clearly states the parties’ rights and duties.

Is a Written Employment Contract Necessary?

In addition to setting out the rights and duties between an employer and an employee, an employment agreement can also help avoid disputes further down the track.

Although all employees are considered to have an employment contract with their employer, it is recommended that a formal written employment agreement is used to avoid disagreements in the future.

Offer letter

Some employers also use an offer letter to complement the employment agreement and deal with employer preconditions.

Employment Policies

It is recommended that employers have some written employment and HR policies in place. Policies can help you deal with workplace issues and significantly reduce legal risk. Policies may be provided to employees when dealing with issues in the workplace, these include:

  • Discrimination Policy;
  • Workplace Harassment and Bullying Policy;
  • Drugs and Alcohol Policy;
  • Acceptable IT Use Policy.

Understand why you need to document everything! Especially when it comes to employment. A written employment agreement is vital when onboarding new employees.



Article by:

Varuni Weerasinghe, LL.B (London)


Velox Partners

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