A contract of employment is a legally binding agreement between an employer and an employee that sets out the terms and conditions of employment. It provides clarity on:
Job title and responsibilities.
Salary, bonuses, and benefits.
Working hours and location.
Probationary periods.
Leave entitlements (holiday, sick leave, parental leave).
Termination conditions.
By having a clear contract, both employer and employee understand their obligations, reducing the risk of disputes or misunderstandings.
Depending on the nature of the role and local labour laws, there are several types of contracts of employment:
Permanent contracts: for ongoing employment with no fixed end date, providing full benefits and protections.
Fixed-term contracts: set for a specific period or project, often with predefined end dates.
Part-time contracts: for employees working fewer hours than the standard full-time schedule.
Temporary contracts: for short-term roles, often covering seasonal peaks or special projects.
Freelance/independent contractor agreements: while not technically employment contracts, they define terms for self-employed service providers.
Contracts of employment play a critical role in HR and legal management:
Legal protection: helps enforce employee rights and protects the company from claims.
Clarity & expectations: defines duties, responsibilities, and benefits to avoid misunderstandings.
Compliance: ensures adherence to local labour laws and employment regulations.
Dispute resolution: provides a reference in case of disagreements regarding terms of employment.
Employee confidence: clear agreements foster trust and engagement among employees.
A comprehensive contract of employment typically includes:
Employee details: name, address, and role.
Job title & duties: clearly defined responsibilities.
Compensation & benefits: salary, bonuses, pension contributions, healthcare.
Working hours & location: expected hours, shifts, remote work policies.
Leave entitlements: annual leave, sick leave, parental leave.
Notice period & termination: how and when either party can terminate the contract.
Confidentiality & IP clauses: protecting company data and intellectual property.
Dispute resolution: procedures for resolving workplace conflicts.
At Mauve Group, we assist businesses in creating compliant and clear contracts of employment across multiple jurisdictions. Our services include:
Drafting contracts that comply with local labour laws.
Advising on employment regulations and statutory benefits.
Supporting international hires via EOR and PEO services.
Ensuring contracts align with salary benchmarking and competitive pay structures.
Whether hiring locally or globally, Mauve Group ensures your contracts of employment protect your business and support your workforce.
Employer of Record (EOR): a service that allows companies to employ workers in foreign countries without establishing a local entity.
Global payroll outsourcing: the practice of outsourcing payroll functions to manage employee payments and compliance across multiple countries.
PEO (Professional Employer Organisation): a firm that provides comprehensive HR services to businesses, including payroll, benefits, and compliance assistance.
Global mobility: the movement of employees across borders for work assignments, requiring visa support and compliance with immigration laws.
Visa and immigration Services: services that assist businesses and individuals in obtaining the necessary work permits and visas for international employment.