employment contract

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Related to Terms of employment: employment contract, Job contract

employment contract

see CONTRACT OF EMPLOYMENT.

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.

References in periodicals archive ?
Morocco has taken major action in terms of employment, through notably promoting vocational training, employment and supervision of youths, in addition to advocating social dialogue," Milquet told MAP, on the sidelines of the 2nd Euro-Mediterranean Employment and Labor Ministers Conference, held in Brussels, on November 21-22.
Unite has regularly criticised the way supermarkets drive down costs along the supply chain, claiming that they create a two-tier labour market and leave agency workers on poorer terms of employment.
From Tuesday, approximately 490 employees who work in these operations will be transferred to work for Barona under their existing terms of employment.
In terms of employment, the banking industry is the biggest employer in Bahrain's financial sector.
He says other benefits of CRS activities include increasing an organization's advantage when recruiting employees, setting the organization apart in terms of employment brand, elevating the sense of teamwork among employees, and helping establish an emotional tie between the employee and the organization.
Casual nurses employed for six months and working shifts on a regular basis have not been able to convert their terms of employment from casual to permanent due to management restructure and financial constraints, but hopefully this will occur in the future.
But he was awarded pounds 150 for not having written terms of employment and pounds 66 holiday pay.
Dr Talib Mahdi said: 'The GRP will bring benefits locally in terms of employment and investment but also to the whole of Wales through the resulting improvements to the environment.
The latest data shows that, in terms of employment, the seasonally adjusted estimate of the total number in employment in Wales was 1.
We are seeing progress in Mi Vivienda [housing agency], which has worked out well in terms of employment and productive chains.
The remediation of the former Roblin Steel Site represents a major stimulus to the local economy in terms of employment, capital investment and tax revenues.
There are employers and positions which are particularly accessible to such re-entry job seekers: chapters cover work opportunities in fields ranging from education and entertainment to government, law, transportation, sales and much more, describing each job in terms of employment outlook, nature of work, training requirements and expected earnings.