Employment contracts Essay

An employment contract is made between an employer and employee where the employer agrees to offer a salary in return for the employee performing duties. The purpose of a contract of employment is to draw up rules and regulations concerning the rights, obligations and conditions between an employer and employee. It generally states the relationship between the two parties. Any breach of contract by any side is not acceptable by law. Contractual entitlements often include: †¢ Amount of pay and when it is paid †¢ Type of employment: whether it is temporary or fixed. †¢ Hours of work †¢ Notice period †¢ Disciplinary rules †¢ Pension benefits TYPES OF EMPLOYMENT CONTRACTS Here are the four most common types of employment found in the Maldives. †¢Permanent employment is commonly found in the public sector where profit and loss are not very significant. And this type of employment usually provides job guarantee throughout the employees working life †¢Temporary employment helps businesses to manage costs more effectively as employees are expected to leave the organization after a certain period of time †¢Zero-hour contracts are more flexible as an employer pays only for the hours that have actually been worked and does not specify a specific amount of hours †¢In a self-employed contract a person is asked to a job but on the basis that they are doing it as if they are running their own business. They have to sort out their own National Insurance, tax, sick pay and holiday pay. MANAGING EMPLOYEE PERFORMANCE Managing employee performance is important to make sure that set targets are consistently being met in an effective and efficient way. Appraisal systems in an organization are designed to motivate and encourage  employees to perform to the best of their ability. Targets are set by the employer which will later be evaluated at the review meeting. Then the targets will be measured against what has been achieved by the employee and a decision will be made on how well the employee has performed. Sometimes, self-appraisal systems are also implemented where the employees analyze their own performance by setting themselves personal targets to achieve. Self-appraisal helps employees to manage and increase their own performance making them more motivated in the workplace. The second technique used to manage employee performance is linking rewards to performance. Employers can offer either monetary or non-monetary rewards to encourage employees to work harder. Carefully monitoring employee performance is important to ensure that desired results have been achieved. Giving a reward for performance is only effective if the right outcomes are achieved.