The employment contract is a security device for both employee and employer to lay out the rules and conditions of employment and workplace conduct and provide the necessary measures for settling disputes and terminating the contract.
A contract should lay out the terms of employment, the renumbration and benefits, the methodology of changing the terms of the contract social conditions such as sick pay and parental leave, and the notice period.
Your terms of contract can be verbally agreed or negotiated or come though a collective agreement and through the terms both parties can understand the breach of contracts.
Where a breach of contract takes place there are a number of options for resolution, either formally or informally, from mediation, to legal action to arbitration and finally through the civil courts.
However, contracts of employment do not have to be within a traditional work setting, but can come from service contracts whereby a individual contracter is providing a specific service for a contracting party, this is often the result of an expression of interest or a tender process. A service agreement will include the terms of service and the financing agreement to the contractor, and will outline the delivery details and penalties and arbitration avenues for disputes, contractual obligations unmet, and quality of service.