A contract is a legal agreement between two parties; an employer and an employee, which sets out the terms of employment to a business or company. A contract is important because it lets people know where they stand in the business, so they they know exactly how much wages that they are entitled too, how many hours they are alowed to work; and a contract protects from any mistakes that could be made.
There are a few different types of contracts and they are both advantages and disadvantages of each of them.
Full Time Contract -
A full-time contract is an agreement in which a person has to work a minimum number of hours defined as such by their employer. A full-time contract often comes with benefits, such as annual leave, sick leave, and health insurance. A disadvantage to a full time contract is that if you are unhappy in the work place, you can’t just leave, but you have to give notice before leaving, so the employer has enough time to find a replacement.
Part Time Contact -
A part-time contract is very much similar to a full time contract, only the hours are fewer and shorter and they don’t work as many days. But they aren't as hard to replace like it is for a full time employee.
Casual -
A casual contract agreement, sometimes called 0 hours, and with this contract they employee works as and when it is available. So this means is there is no work, then you don’t work, therefore don’t get paid. But also with a casual contract you are entitled to turn down offered work, but the more you turn work down, then the less you get asked, and the les you get paid.
Fix-Term Contract -
Fix-termed contracts are contracts that only contract employees to work a fixed period of time, and after the time period is up, they can either turned away, or re contracted for another fix-term. These contracts are getting used more and more now, as it gives employers the chance to employ the best people for the job.
On Completion Contract -
An on completion contract means that the employed is not contracted to be paid until the job is done. Also if the work is not finished to a deadline, then the employers usually deducted a percentage of their wages, depending on how many days late it is.
Freelance -
Freelancing is not really contracted, but freelancers get hired to do some work for an employer or a business. The advantage of being a freelancer is that you are able to accept to work that you want to do, and refuse the ones that you don't. But if you keep turning down work from businesses then people will hear about it, and it could give you a bad reputation, and if you’ve got no-one wanting to hire you, then you’re not making any money. Another disadvantage about working freelance is that you have to sort out your own national insurance and tax, as well as having to buy all of your own equipment, if any is needed.
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