The importance of having an employment contract and handbook

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Employee Contract
Every business that employs people should have a framework for managing their staff. This framework can provide the ground rules for how the working relationship will work in practice. An employment contract lays out the terms and conditions of employment and covers things like pay, hours of work, annual leave etc. This document should be provided within the first two months of employment and gives the employee all the information they need for their employment to commence.

A handbook provides reference to all the HR policies and procedures that will outline the working relationship between employer and employee. Put simply, it’s a management tool that clearly sets out what happens in a given scenario. Used effectively, it provides the appropriate forum for both the employer and employee to work together to resolve any issues that may come up during the relationship.

Without a contract and handbook, an employer can make themselves vulnerable by not having the structure in place to deal with issues that crop up. This can lead to misunderstandings and potential conflict

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