A contract is an agreement between parties based on an exchange of value. Most contracts are verbal and not in writing. A contract of employment is an agreement between an employer and employee and is the basis of the employment relationship.

Contracts of employments do not need to be in writing to be legally valid, but it is better if they are.

Remember a contract ‘starts’ as soon as an offer of employment is accepted. The employee starting work is confirmation that they accept the terms and conditions offered by the employer.

Employees are legally entitled to a Written Statement of the main terms and conditions of employment within two months of starting work. This should include details of things like role, obligations and responsibilities, pay holidays and working hours. These may be expressed terms or those required by the law- statutory terms for which see the Labour Act 2003.

Remember, that some terms and conditions are taken as standard and may not be written down. These may be implied terms because they are obvious:

• for example, you would not expect a contract to say that an employee will not steal from an employer;
• employees should not cause financial harm to the employer;
• a driver employee should not drive recklessly.

It is always best to put a contract in writing as it saves a lot of time, parties are clear as to their duties and responsibility and avoids potential misunderstanding.

Considering the dynamic nature of work at some point, the parties – particularly the employer- may want to change the terms of the contract.

So, for example:

• an employer may want to reorganize or restructure the business due to economic circumstances. This might mean changing working hours, business units, responsibilities or roles;
• an employee may seek improvements in their pay or holidays, or want to change the hours they work due to domestic responsibilities.

If an employer is considering changing or varying a contract they should above all consult. Consult the employees and where there is an existing union consult it also.

It is important to note that an existing contract of employment can be varied ONLY with the agreement of both parties. Changes Must Not Be Imposed. Imposition of varied terms may be considered as a breach of contract with attendant consequences, of legal action, compensation and reputational damage.  Such changes as are required must be agreed on an individual basis or through a collective agreement where one is available.

It is best to notify the employee of any changes agreed, in writing, before implementation if possible or within a short time of its implementation.

Theodore Albright, MicroLex Africa.