| Over time the need to have a written | | | | negotiation to take up the offer but at this point it |
| employment contract has become a necessity .In | | | | is not legally binding. |
| the past employers and employees used to make | | | | Interviews are held to further negotiations. |
| verbal agreements concerning the rights and | | | | Employers at interviews are only assessing the |
| obligation of their employment relationship. | | | | applicant as a potential candidate for the position. |
| Since verbal agreements are difficult to prove, | | | | There may be a second or even a third interview |
| these days, contract of service are preserved in | | | | and at this point still nothing is legally binding. |
| a written documents known as the | | | | Perhaps a final interview, there may be |
| “Employment Contract.” This document | | | | discussions held on terms and conditions, |
| categorically states the terms and conditions that | | | | remuneration and other benefits. It is still a point |
| govern the employer and employee .In the event | | | | of negotiation. If the employer soon thereafter |
| of dispute between the two parties, this written | | | | offers the job to the potential candidate, it still |
| contract becomes evidence tat can be used in | | | | does not bind the candidate as he or she would |
| court to settle such disagreements. Furthermore, | | | | counter- offer by asking for a higher |
| since job descriptions are not as simplistic as in | | | | remuneration. |
| the past, verbal conversations governing an | | | | If the employer accepts these terms, an offer |
| employers / employee relationship will not prove | | | | can be made on such terms and if the candidate |
| as effective as a written contract. | | | | accepts then there is an intention to create legal |
| The employment contract not only allows for | | | | relations. A contract for employment may be |
| certainty, it also allows for any collective | | | | verbally concluded at this juncture. It is at this |
| agreement that an employer would want to | | | | point of appointment that the potential employee |
| negotiate with other employees of the | | | | usually receives his employment contract stating |
| organization. In addition where disciplinary | | | | all the terms and conditions agreed upon the |
| procedures are drafted within the employment | | | | negotiation stage. |
| contract, it serves a two- fold purpose in that | | | | If both parties agree to the terms and conditions |
| firstly, the employer can only enforces these | | | | in the employment contract they will subsequently |
| particular procedures and secondly it also ensures | | | | sign the document constituting the agreement. |
| that the employer does not take advantage of | | | | Then for the agreed number of years or |
| any statutory provisions or for that matter | | | | indefinitely, this document will govern the |
| exploit his or her employee. | | | | employment relationship. |
| The benefits of documenting terms and conditions | | | | One of the crucial elements for entering an |
| into an employment contract is that it provides | | | | employment contract is that parties must have |
| for certainty and protection to both parties alike | | | | the legal capacity to enter the contract .Examples |
| .Any variation in the agreement can be added to | | | | where there is no such legal capacity if either |
| the document so that employment contract | | | | party dies, is of unsound mind or falls sick so that |
| permits flexibility. | | | | the contract cannot be fulfilled. Under the |
| Basically the general principle of contract law | | | | Employment Act of Singapore, a person who is a |
| applies to all and any employment contract. | | | | minor (below the age of 21) can enter into a |
| Before an employment contract is effectively | | | | binding employment contract provided only if the |
| concluded there could be several prior | | | | person is qualified for the particular job description. |
| negotiations. An advertisement in the news paper | | | | For an illustration, an unqualified 18 year old cannot |
| or job website like about a pending job offer does | | | | be employed as nurse in a hospital purely because |
| not constitute an offer as it only operates as an | | | | he or she lacks the legal capacity to do so. |
| "Invitation to treat". This means a party can enter | | | | |