Employment contracts

Question 1

Employment at will

Answer 1

The employer or an employee can terminate the contract of employment at any time without any reason explanation or warning.

Question 2

Limitations to employment at will

Answer 2

1. Rights and duties of both parties spelt out in the employment Act
2. Policies and procedures of the organisations
3. Kind of contract
4. Agreements with the labour unions.

Question 3

Psychological contract

Answer 3

Mutual unwritten expectations that exist between an employer and an employee regarding policies and practices.

Question 4

Probationary contracts/ trial period contract

Answer 4

Issued over the period for a new employee in the time between signing an employment contract and being granted permanent employment status.

Question 5

Advantages of probationary contracts

Answer 5

1. Evaluate whether the working relationship is a good fit.
2. Avoid the retention of new hires that dont meet company standards.

Question 6

Disadvantages of probationary contracts

Answer 6

1. Lower morale for new = lower performance
2. Legal risks where the employment is at will- they can be let go for any reason not protected by law.
3. Negatively affect the company’s reputation- applicants may think the company is not confident in their hiring choices.