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Employers must ensure that all employees have a contract of employment. This is in the interests of both employers and employees.

• The contract of employment is a legal document that can be used to resolve disputes between the employer and employee.
• It outlines information on pay. This is important because it gives the employee the right to a guaranteed income and allows employers to manage their budget.
• It sets out conditions such as employees’ responsibilities. The employer can take action, such as dismissal, if an employee is in breach of their contract.
• Terms of employment (such as the start date and the length of the contract) are included. This helps to protect employees from being released from their job before the contracted period is completed.
• It informs the employee of their entitlements such as sick leave, holiday pay, and compassionate, maternity, or paternity leave. This helps the employee plan ahead.
• It states the hours of employment. This prevents employees from being asked to do overtime without payment.