Employment agreements (also known as contracts of service) set out the terms governing the relationship between an employer and an employee. Without a solid and comprehensive employment agreement in place, employers may find their business mired with ill-disciplined workers and frequent employment disputes.
The employment agreement of an employee covered by the Employment Act and that cannot contain any kind of terms which is less favourable than the minimum set standards stated in the Employment Act. If any of such terms are present in any employment agreement, then these terms will be considered as void and illegal.
For example, the Employment Act stipulates a minimum of 7 days’ paid annual leave for employees who have completed their first year of service. Hence the employer, therefore, cannot comprise a term that is providing the employee with only six days’ of paid annual leave in the employment agreement
All employers must issue KETs in writing to employees who:
KETs must be issued within 14 days from the start of employment and that can be issued in soft or hard copy, comprising handwritten.
Apart from these KETs, other essential employment terms include the terms on non-disclosure, non-competition and employee code of conduct.