Unit 14: Assignment One
HR Pathway - Aspects of Employment Law
P1 - Describe the different types of employment contract.
What are Contacts and How are They Formed?
Contracts are a legal agreement between two parties and are essential within the working
environment. This ensures both the employee and employer are aware of what is expected
so the employee will work effectively. The contracts are only able to be formed when a full
agreement is made between the two parties involved within the specific contract. There are
four essential parts within the formation of a contract – offer, acceptance, consideration,
legality.
The first step involved with forming a contract is an offer. An offer needs to be made in
order for both people involved to understand a contract will be formed. The next step in
forming a contract is offer acceptance. This is when the offer made is accepted by the party
it applies to. The follow step is contract consideration. This means that each party involved
will understand what they are gaining from the contract. There are three main types of
contract consideration – past, present and future contract consideration.
Types of contracts
The formation of a contract can depend on the type of contract. This means it is essential to
have an understanding of the type of contract before making an agreement. There are many
different types of contracts including permanent, full time, part time, fixed term, temporary,
home or teleworking, agency, job share and flexible working.
A permanent contract is considered to be the most common type of contract within the
work environment. This type of contract means an employee will remain working for the
business until they no longer want to work for the organisation. Many people would like to
be employed on a permanent contract as it ensures financial stability and a regular income.
A part time contract involves an employee working fewer hours than a full-time employee
does. Even though, a part time contract involves working less hours, they generally contain
the same details as a full-time contract. Within the contract, the numbers of hours the
employee is expected to work will be clearly stated and there may be the possibility to work
over time. Working part time allows employees to be more flexible and have a better work
life balance.
A fixed term contract is used when an employee is needed for a set amount of time. An
employee that is on a fixed term contract will understand how long they will be employed as
their contract will state how long they are needed for. In some cases, a temporary contract
HR Pathway - Aspects of Employment Law
P1 - Describe the different types of employment contract.
What are Contacts and How are They Formed?
Contracts are a legal agreement between two parties and are essential within the working
environment. This ensures both the employee and employer are aware of what is expected
so the employee will work effectively. The contracts are only able to be formed when a full
agreement is made between the two parties involved within the specific contract. There are
four essential parts within the formation of a contract – offer, acceptance, consideration,
legality.
The first step involved with forming a contract is an offer. An offer needs to be made in
order for both people involved to understand a contract will be formed. The next step in
forming a contract is offer acceptance. This is when the offer made is accepted by the party
it applies to. The follow step is contract consideration. This means that each party involved
will understand what they are gaining from the contract. There are three main types of
contract consideration – past, present and future contract consideration.
Types of contracts
The formation of a contract can depend on the type of contract. This means it is essential to
have an understanding of the type of contract before making an agreement. There are many
different types of contracts including permanent, full time, part time, fixed term, temporary,
home or teleworking, agency, job share and flexible working.
A permanent contract is considered to be the most common type of contract within the
work environment. This type of contract means an employee will remain working for the
business until they no longer want to work for the organisation. Many people would like to
be employed on a permanent contract as it ensures financial stability and a regular income.
A part time contract involves an employee working fewer hours than a full-time employee
does. Even though, a part time contract involves working less hours, they generally contain
the same details as a full-time contract. Within the contract, the numbers of hours the
employee is expected to work will be clearly stated and there may be the possibility to work
over time. Working part time allows employees to be more flexible and have a better work
life balance.
A fixed term contract is used when an employee is needed for a set amount of time. An
employee that is on a fixed term contract will understand how long they will be employed as
their contract will state how long they are needed for. In some cases, a temporary contract
