employment contract

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employment contract

a CONTRACT between an EMPLOYEE and the company for which he or she works, specifying the terms and conditions governing his or her employment. Employment contracts of directors and senior executives are called service contracts, and these often contain provision for generous severance payments in the event of early dismissal.

The employment or labour contract between an employee and the firm that employs him or her generally specifies that the employee undertakes specific tasks for the firm in return for a WAGE. While the wage paid to an employee is a clearly definable part of the labour contract, the level of skill exercised by an employee and the amount of effort he or she exerts in working is more difficult to specify and measure. Consequently, labour contracts are subject to possible contract problems, such as ADVERSE SELECTION and MORAL HAZARD, and may involve significant AGENCY COSTS.

See LABOUR MARKET.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

References in periodicals archive ?

The sources also said that though Prime Minister Shahid Khaqan Abbasi has rejected the summaries seeking an extension to the services of Pakistan Telecommunication Authority (PTA) chairman, and of various officials, however, state minister is hopeful to secure extensions in the job contracts of blue-eyed officers.

MoIT minister appoints blue-eyed persons in attempts to privatise profitable companies

"So all job contracts will essentially be updated to accommodate the changes expected in the sponsorship and exit permit rules, there is no doubt about it."

New Qatari labour law to be gazetted

In order to mitigate the situation and realize social justice, Iranian Constitution has mandated government's interference in drafting the process of job contract by codifying laws on the conditions of signing a contract.

Job security in Iranian and international law standards

The official said existing job contracts were "non-descriptive and vague" that allowed "personal interpretation".

Job agencies face new clamp

Villepin originally said the first job contract was the only solution to youth unemployment, which runs as high as 50 per cent in working-class suburbs.

French dump despised youth jobs law

Ulum said there has been no resistance from employers to raising the minimum wages of their maids and they have been happily doing it while renewing the job contracts.

Indonesia sets wage term to retain maids in UAE

Al Suwaidi added plans for re-engineering of transactions, which will have no impact on fees, would ease the lives of more than four million workers in 250,000 private companies across the country, allowing workers and employers to obtain work permits and job contracts online and saving time and effort.

Emirates ID cards to replace labour cards from next year

Last year, the Ministry of Labour processed as many as one million applications for new work permits, another million for renewal of these permits, one million applications for new job contract and a million for renewing job contracts.

Fast-tracking of transactions for workers' visas

"The Indian Embassy has submitted a proposal to the Indian government to implement online attestation of job contracts to avoid fake contracts", said Dr K.