What is the concept of a contract? A contract is a legal agreement between two or more parties that is enforceable by the law. Since it is legal, the parties who are involved are bound to the terms and conditions that are stipulated in the contract. Unlike an agreement, any violations made against the contract have legal consequences.
An agreement is also a contract between two parties, but it is not legally binding and therefore any breach or violations are okay. That is why it is important to determine if what you will be involving in is a contract or an agreement.
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Building Labour Contract
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Difference between Limited and Unlimited Contract
A limited contract is a contract agreement that is set for a specific number of years. It is signed by both employer and employee and will immediately end on the specific contract end date. Once the contract ends, the employer may or may not renew the employment contract. If an employee quits before the contract ends, they need to pay the bond that is part of the contract. An example of a limited contract is a construction contract. Unlike a limited contract, an unlimited contract does not have an expiration date and contract renewal is not practiced. It is more flexible than a limited contract and is friendlier too.
Step-by-Step Process to write Labour Contract
- Have the title of the contract placed on top of the page.
- Decide the terms and conditions that you want to include in the contact and other important things related to the job.
- Follow appropriate formatting for this contract. Use the same margin size for all sides of the contract sheet. Also use traditional font styles and a font size between 10 to 12.
- Each terms and conditions should be explained in detail on separate paragraphs.
- Use single line spacing in between sentences and double line spacing in between paragraphs.
- Save your work.
- Spell-check and proofread.
Labour Work Contract
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Labour Contract Form
The Elements of a Labour Contract
If you know about its essentials, you are sure to be able to make an effective contract, just like our contract samples. This will also make your task easier. So here are elements of a labour contract that you should know.
- It is important that the definition of the position is provided in a contract. This way the employee will know their duties and responsibilities, including any limitations to their responsibility. It is also where the work hours, time and place of work is stated.
- The start and end date of the agreement or contract should be stated clearly in the job agreement contract to prevent any confusion on the dates. This will determine the length of the contract.
- The performance requirements would be the expected outcomes that you want the employee to achieve during the whole term of the contract.
- The compensation should be discussed thoroughly, including the salary rate, method of payment, payment frequency, and other benefits.
- Under the benefits would be the bonuses, incentives, allowances, and other health benefits.
- The terms and conditions for terminating the contract should be also be discussed. This includes any bonds or consequences that are appropriate.
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