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Pros and Cons of an Employment Contract

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Pros and Cons of an Employment Contract

Abstract
An employment contract or contract of employment is an agreement between an employer and an employee which sets out their employment rights, responsibilities and duties. These are called the terms of the contract.
The employment contract does not have to be in writing. However, the employee is entitled to a written statement of the main employment terms within two months of starting work. (Heathfield)
The employment contract is made as soon as the employee accepts the job offer. When the employee starts work it will show that they accepted the job on the terms offered by the employer, even if the employee does not know what they are. Having a written contract could cut out disputes with the employer at a later date, and will help the employee understand their employment rights.

Introduction
A written employment contract is a document that the employer and employees sign setting forth the terms of the relationship. The employer does not have to enter into a written contract with every employee you hire. In fact, written employment contracts are generally the exception, rather than the rule. In some situations, however, it makes good sense to ask an employee to sign a contract. (Heathfield) The concept of an employment contract seems simple enough: “You work for me and I pay you for that work.” But there are some very important contractual nuances to the relationship between employers and employees which all human resources professionals should be aware of and prepared to deal with. (Compact Law)
As a result, not all contracts are written pieces of paper filed in a drawer in the boss man’s office. For many reasons, courts can find one party to an employment relationship liable to the other party, even in the absence of a written contract. For example, a large number of states allow an applicant for a

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