A common law contract of employment is an agreement between an employer and an employee that sets out the terms of their working relationship. Unlike statutory contracts, which are governed by specific laws and regulations, common law contracts are based on legal precedent and custom. This means that they can be tailored to suit the needs of both parties, but they also require careful consideration and negotiation to ensure that they are fair and legally enforceable.
One of the key features of a common law contract is that it is a binding agreement between two parties. This means that it is legally enforceable, and both the employer and the employee are bound by its terms. Common law contracts typically cover a range of issues, including the length of the employment, the duties and obligations of the employee, and the compensation and benefits to be paid.
Another important aspect of common law contracts is that they can be modified or terminated by mutual agreement between the parties. This means that if circumstances change, the contract can be revised to reflect the new situation. However, any changes must be agreed upon by both parties and should be documented in writing to avoid misunderstandings or disputes.
One key advantage of common law contracts is that they can provide greater flexibility and clarity than statutory contracts, which are often highly prescriptive and inflexible. For example, a common law contract may specify the hours and days of work, whereas a statutory contract may simply state that the employee must work a certain number of hours per week. This can be particularly useful for part-time or flexible workers, who may require a unique working arrangement that is not covered by statutory regulations.
However, the flexibility of common law contracts also means that they require careful consideration and negotiation to ensure that they are fair and legally enforceable. Both parties should take the time to review and understand the terms of the contract before signing, and any disagreements or concerns should be addressed before the contract is finalized.
In summary, a common law contract of employment is a flexible and customizable agreement between an employer and an employee that is based on legal precedent and common practice. Although they require careful consideration and negotiation, common law contracts can provide greater clarity and flexibility than statutory contracts, and are well-suited to part-time or flexible workers. If you are considering a common law contract, be sure to consult with a qualified legal professional and carefully review all terms and conditions before signing.