The purpose of an employment contract is for an employee and an employer to agree on the terms and conditions under which the employee will work for the employer. An employment contract is always a bilateral agreement – in other words, made between two parties. An employment contract can either be valid for an indefinite period or for a fixed term.
An employment contract may be created in written, oral or electronic form. A written contract is always better than an oral one. One copy of the contract is for you and the other for your employer. According to law, an employment contract is equally valid regardless of whether it is written, oral or electronic. However, an oral contract always involves the problem that, over time, it may be difficult to remember what was agreed, or the parties may remember things differently.
The terms and conditions of an employment contract must not be weaker than those agreed in the relevant collective agreement. Conversely, an employment contract can specify better terms and conditions of employment than those set out in the collective agreement. You can check with your employer or shop steward which collective agreement applies to your workplace.
An employment contract should include at least the following points:
- the name and personal identity code of the employee and the employer and their respective places of residence and business;
- the period of validity of the employment contract (an indefinite or a fixed-term contract);
- period of employment in fixed-term contracts and the justification for specifying a fixed term;
- working hours;
- work duties;
- pay details and pay period;
- annual holidays;
- term of notice;
- applicable collective agreement;
- date and signatures.