Essay
BTEC Business Level 3 Employment Law Assignment 1
- Module
- Employment Law
- Institution
- OCR
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A.SUNIT 14
Aspects of Employment Law
Assignment 1
26/03/2021
Aspects of Employment Law
In this assignment I will be describing the different types of employment contract and
identify the differences between contracts of employment and contract of services. I will
also be explaining the impact of relevant legislations and regulations on nay two types of
employment contract. Lastly, I will be analysing the impact of relevant legislation or
regulations on the two types of employment contract I’ve identified, and evaluating the
extent to which the selected business organisation has adapted their working arrangements
to accommodate legislation, particularly in relation to the rights and responsibilities of both
employees and employers.
Different types of employment contract
An employment contract includes the rights, responsibilities, duties and employment
conditions that make up the legal relationship in the workplace between the employer and
employee. It includes a variety of different terms, for example employer having a duty to
pay their employees.
There are 3 main types of employment contract:
1. Permanent contract
2. Fixed-term contracts
3. Casual employment contracts
Permanent contracts are those who are there for a long period of time, for example a year
or more. Permanent contracts apply to those who work regular hours and get hourly pay
rate depending on their hours. This specific contract will only end if the employer decides to
terminate it for whatever reason or if the employee is dismissed, employees who are on this
type of contract are usually entitled to statutory employment rights. Fixed term contract
have a set date by when the contract will end, for example from 1 month up to 1 year and
more. This type of contract are best for those who are looking for work temporarily or for
those who are looking to go onto maternity leave any time soon. This type of contract
includes the same rights as a permanent contract would for employees, by law, the contract
cannot offer employees less favourable terms because they’re on a fixed-term. If an
employer decides to extend the fixed term contract they can, however, not for longer than 4
years, as at this point the employee would be classes as a permanent employee.
Organisations offer fixed-term contracts depending on their situation, for example near
Christmas, businesses tend to offer 1-2 month contracts to help the business in busier times,
after the contract ends, the employer then by law, must inform about any permanent
vacancies in the business if they come up.
Casual employment contract is quite different compared to permanent and fixed term, this
contact is set by the employer if they’re unsure how many hours they want to offer their
employee and therefore, not providing a regular shift pattern, however, would want them
to work for them anyway. This type of contract must specify the minimum working hours an
, A.S
UNIT 14
Aspects of Employment Law
Assignment 1
26/03/2021
employee can offer each week, with the expectation of the hours and the shift pattern
throughout may fluctuate. Those who are on this type of contract will still be able to get
holiday based on the number of hours they worked, as well as being entitled to employment
rights including statutory sick pay, where available and statutory minimum notice periods.
Differences between contracts of employment and contracts for services.
The contract of employment and contracts for service is quite different. The contract of
employment is a formal agreement in which a company or the organisation hires candidates
to be employees. Contracts of employment will usually outline the main duties and
responsibilities of the chosen position, for example the wages, the hours and any other time
commitments required for the position. If the contract is fixed term, then this means the
expected length of employment will be shown, or it could state that the employment can be
terminated at any time by either employer or employee depending on the situation.
A contract for service on the other hand, is normally the one which states that a service
provider will perform certain duties for a business, however, the service provider is not
necessarily an employee. The individual provider of this type of contract is usually known as
independent contractor. Usually, this individual would be self employed or a firm that offers
services such as landscaping maintenance, cleaning, childcare or other domestic service.
This type of contract can be given as a temporary or occasional basis and could also be
ended at any time by either employee or employer.
When an person is on a employment contract, they are legally considered as an employee,
which means they are fully entitled to minimum wage, paid time off (depending on the
organisation), training, health insurance and they could also be entitled to unemployment
benefits. On the other hand, a service provider is not an employee, therefore is not eligible
for any of the employment benefits, and are also ion charge of their own taxes and
insurance.
The impact of relevant legislation or regulations in full time and zero hour contracts.
There are many legislations designed to protect the employees from exploitation. In the UK,
there are a few areas of employment legislations that are there to form the employee
rights. One of them being the recruitment, this type of legislation is about what employers
can and can’t do when hiring new staff, as well as what their job responsibilities are once
the job offer has been made. This legislation also outlines that employees must be provided
with an employment contract. In this situation, it doesn’t matter if the contract is 0 hour or
full time, employees still need to make sure they have their contracts of employment to
prove that they are employed. New employees must be given a contract of employment
within the 2 moths of starting a job role. The employment contract employees get includes a
lot of information about payment, available holidays, duties, responsibilities, notice period
and more. Another legislation is pay, this has been put in place to make sure businesses pay
their employees the minimum wage (National Minimum Wage Act (1998)) or above if that’s
what the company decides, these minimum wage rates are set and changed each year by
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