Implication of a Contract of

EmploymentWhat is a Contract :An agreement between two or more competent parties to do or abstain from doing some act. It includes.(1)Those under seal(2)Those not under seal(3)Contracts of recode such as recognizance.

The contract of service, like any other contract, conferred rights and imposed corresponding duties and obligations on the two parties.

The main obligations of the master is to pay the servant the remuneration that has been agreed upon and to employee for the period of the contract.

For a breach of contract on the part of a servant, a Court had no power to decree specific performance and compel him to perform his wok.

Contract of Service & contract for service.

• In order to establish the existence of a contract of employment, it is necessary to distinguish between a ‘Contract of Service’ and a ‘Contract for Services’, the former giving rise to the master and servant relationship, while the later contemplates an Employer and Independent Contractor relationship.

• This is a question of law depending upon the rights conferred and the duties imposed on the parties by the contract.

• The essence of the relationship of master and servant is the rendering of service by the servant and the control the master has over the work.

Types of employment

• Employees are designated under various categories by employers.

• In law such designations or ‘labels’ given to employees may have significant consequences.

• However, the use of such designation or label is not always conclusive, as it is seen in certain instances that employers use such terms to avoid and overcome certain statutory obligations, which sometimes lead to a certain amount of unfair labour practice.

•Probationers.• A probationer is an employee who enters into a

contract of employment with the employer. • Usually a period of probation is set out in the

contract of employment for the purpose of enabling the employer to assess the capacity and capability of the workman.

• Sometimes the contract also has provision for an extension of the probationary period if the employer so desires.

•Apprentice.• In the case of an apprentice there is no contract

of service. • Therefore, he cannot be considered a workman

or an employee in the normal sense. • An apprentice is a person who is there to learn

the trade, and the master or employer has undertaken to train him and prepare him to understand the trade in which he is engaged.

•Fixed Term Contract.• A fixed term employee is a person who is under a

contract with the employer wherein he has agreed to serve for a determined period of time.

• Therefore, at the end of the period agreed by the parties, his employment is deemed to have come to an end.

Casual Employees• A casual employee has to be contrasted with a

permanent and regular employee who has the right to expect work from the employer and to whom work must be offered regularly by the employer.

• He will be offered employment as and when work is available.

• An employer cannot expect a casual employee to arrive for work continuously.

Settlement of Industrial Dispute Act.

• The preamble to the Act describes it as ‘an Act to provide for the prevention, investigation and settlement of industrial disputes and for matters connected therewith or incidental thereto’.

• Section 2 of the Act casts a general duty on the commissioner of labour to take steps to settle industrial disputes wherever they come up or are likely to come up. The words used in the Act are;

• Where the Commissioner is satisfied that any industrial dispute exists or is apprehended, it shall be the duty of the commissioner to make such inquiries into the matters in dispute and to take such other steps as he may think necessary with a view to promoting a settlement of the dispute.

Arbitration• Arbitration is one of the oldest methods of settling

disputes. • When a disputes. When a dispute arises, it is referred

to an independent party for settlement. • The advantages of arbitration are:

(1) It may be quicker than court proceedings in obtaining a result.

(2) Arbitration is cheaper for the parties.(3) Since arbitrators are able to apply their special

knowledge to the matters in dispute.(4) The non applicability Evidence Ordinance, Civil

Procedure Code, Arbitration Ordinance help the arbitrator take a practical view of the problem.