HRM Unit 2.1

Employment Contract

A legally enforceable promise or set of promises made between an employer and an employee regarding terms of employment.

Common Law Contract of Employment

A type of employment contract characterized by basic terms such as job title, pay rate, and vacation entitlement.

Dispute Resolution

The process of settling disagreements about the terms of a contract, which may be taken to court if the parties cannot agree.

Common Law

The body of law derived from judicial decisions rather than statutes, used by courts to interpret employment contracts.

Terms of Employment

Key elements included in an employment contract, such as the job title, pay rate, and working hours.

Legally Enforceable Promise

A binding agreement that can be upheld in a court of law.

Example of an Employment Contract

A worker agreeing to work from 9 to 5, five days a week, for an hourly wage of $20.

Court Settlement

The resolution of contract disputes imposed by a court when parties fail to resolve issues independently.