The importance of the employment contract for the employee

In principle, a contract of employment must always be in writing, it is a matter of course. The reason is that verbal agreements are difficult to prove in cases of doubt or dispute. That said, employment contracts do not take into account all the details of employment. They often refer to the terms and conditions of collective agreements, company rules or the law. In principle, the parties also have freedom of design in terms of content. However, according to – the specialist in company/employer compliance since 2003 – there is a limit to the scope of the design when there are mandatory regulations from which it is not allowed to deviate.

What is an employment contract and what is its importance?

An employment contract is concluded on the basis of an employment relationship between an employee and an employer. It must be concluded in writing in duplicate no later than 3 working days after the start of employment. One copy of the employment contract is given to the employee, the other is kept by the employer. Obtaining a copy of an employment contract by an employee must be confirmed by the employee’s signature on a copy of the employment contract held by the employer.

The employee must have a copy of the collective agreements. They commonly relate to voluntary social security payments, remuneration, working hours, reimbursement of travel expenses, etc.

Whether you are an employee or an employer, there are many legal obligations that must be respected. Depending on the country where you live and work, there may be many laws governing the employment relationship of employees. Employment contracts avoid misunderstandings, leaving room for absolute clarity for both parties about their rights and duties. It is essential that these documents include the following information:

  • Name and surname of the employee and the employer;
  • Information on documents proving the identity of the employee and the employer;
  • Tax identification number (for employers, with the exception of individuals who are not sole proprietors);
  • The date of the start of work and the validity period of the position,
  • Remuneration conditions ;
  • Compulsory health insurance in accordance with the Labor Code;
  • Place of work: if the employee works in a branch, representative office or other separate organizational unit of the organization, the contract must state the location of the work;
  • Job function: qualifications, specialty, as well as the specific tasks assigned to the employee;
  • Length of the notice period (even if regulated by law);
  • Illness: procedure in case of illness (e.g. medical certificates);
  • Confidentiality and competition clause: the employee must not divulge secrets that concern internal processes, especially if the company operates in a highly competitive market or processes sensitive data.
  • Other conditions governed by labour legislation.

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