Contractors and Their Contracts with Consultants
Objectives of the Chapter
Although there have been psychological contracts & contracts for performance, but only the contract of employment is legally binding on both the employer and the employees. The employment contract defines the legal relationship between an employee and the employer, and their expectations from each other. All the terms &conditions of the employment are agreed upon and understood by both the parties and are explicitly stated at the beginning of the employment. If violation of the terms and conditions occur, they can be filed in the court.According to these terms and conditions, the employer needs to oblige to all the rules and offer the employer access to all the legal rights, and on the part of the employee, he/she needs to abide by the rules and regulations of the organization. People who are employed on a contract basis are not provided with these facilities.
The employment contracts vary depending upon various situations. For example, after a country undergoes industrialization, there is a shift from the traditional arrangements and it gives way to a modern arrangement. According to the traditional arrangements of employment contract, an employee was expected to work for 38 days on a 5days a week basis. But now, with different types of contracts coming up, the trend has changed. These changes are beneficial for both the employers and the employees. In certain sector, especially in industrial sectors, it has been seen that there is a shift towards self-employment. The shift helps the employees because they can work according to their comforts. It also helps the employers because it provides them more options. They are able to manage their resources effectively by using the outermost ring of the flexible model of Atkinson’s. This helps in the overall growth of the organization. The modern contract of employment varies greatly from the traditional form, which has been discussed further, in details.