A contract, a term or the performance of a contract or term may be illegal on one of three broad grounds. First, it may be contrary to public policy. Second, it may be expressly or impliedly prohibited...
One of the requirements for the creation of a valid contract of employment is that “valuable consideration” moves between the parties, and that the terms of the purported contract are sufficiently...
For a contract of employment to come into existence, it is essential that the potential employer makes what the common law recognises as an “offer” to enter into legal relations, and that that...
The existence of a mutual intention to create legal relations is an essential precondition of the existence of a contract of employment (or any other kind of contract, including a principal/contractor...
Parties wishing to enter into a contract of employment must have the legal capacity to do so. There is a common law presumption that a person has the capacity to enter into a contract. Issues concerning...
The employment contract may be varied at any time by mutual agreement between the parties. Generally speaking, parties cannot unilaterally vary the employment contract unless the original contract of employment...
This guidance note is the second of three guidance notes that provide information regarding the drafting and negotiation of an employment contract.
See also Guidance Notes: Issues to consider when advising on an employment contract — Preparatory steps and other issues and Issues to consider when advising on an employment contract — Incapacity/sickness and other issues.
This guidance note assumes that the prospective employee is not a director but is of a relatively senior level. That said, many aspects of this guidance note will be relevant to all employees, irrespective of level.
This guidance note focuses on typical provisions in such an employee’s contract. Not all of the provisions outlined below will appear in all contracts, which may also have different provisions.
Depending on the circumstances, some issues may be of more concern for a prospective employee, while others may be of more concern for a prospective employer.
For more information, see Overview — Executive contracts and appointment letters, Overview — Duties of officers, Overview — Breach of duties, Overview — Terminating employment or office and Overview — Remuneration for executives and officers.
Employers often include a probationary period, during which a shorter notice period applies — eg between 3–6 months.
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