What Is the Difference between a Contract of Employment and a Written Statement

When it comes to the legal paperwork involved in hiring employees, there are two main documents that employers need to be aware of: the contract of employment and the written statement. While these terms are often used interchangeably, they actually refer to two distinct documents with different purposes and legal implications.

So, what is the difference between a contract of employment and a written statement? Let`s take a closer look.

Contract of employment

A contract of employment is a legally binding agreement between an employer and an employee that outlines the terms and conditions of their employment. This document is used to establish the rights and responsibilities of both parties and typically includes information such as:

– The job title and description.

– The start date and duration of employment.

– The employee`s salary or wage, as well as any bonuses, benefits, or perks.

– The hours of work, including any overtime or shift work.

– The length of notice required for termination by either party.

– Details of any restrictive covenants, which are clauses that prohibit the employee from doing certain things after leaving the company (such as working for a competitor).

While a contract of employment is not a legal requirement in all countries, it is a best practice to have one in place to ensure that both the employer and employee are on the same page about the terms of their employment.

Written statement

A written statement, on the other hand, is a document that employers are legally required to provide to all employees within the first two months of their employment. This document outlines certain key information that employees need to know about their employment, such as:

– The employer`s name and address.

– The employee`s name and job title.

– The start date of employment.

– The employee`s rate of pay and pay schedule.

– The hours of work.

– The entitlement to holidays and sick leave.

– The length of notice required for termination.

– Details of any disciplinary and grievance procedures.

Unlike a contract of employment, a written statement does not need to be a formal agreement between the employer and employee. It is simply a document that provides employees with the information they need to understand the basic terms of their employment.

Key differences

So, what are the key differences between a contract of employment and a written statement? Here are a few things to keep in mind:

– A contract of employment is a legally binding agreement between the employer and employee, while a written statement is a document that employers are required to provide to all employees by law.

– A contract of employment typically includes much more detailed information about the terms and conditions of employment than a written statement does.

– A contract of employment is negotiated and agreed upon by both parties, while a written statement is a one-sided document provided by the employer to the employee.

– While a contract of employment is not required by law in all countries, it is a best practice to have one in place to ensure that both parties are clear on the terms of employment.

In summary, while there may be some overlap between the information included in a contract of employment and a written statement, these are two distinct documents with different purposes and legal implications. Employers should be sure to understand the differences between the two and provide both as necessary to ensure that their employees are clear on the terms of their employment.