A.

Employment contract

An employment contract is all the rights, responsibilities, duties and employment conditions that
make up the legal relationship between an employer and employee. It includes a number of terms
which, whether written down or not, are legally binding the employer’s duty to pay the employee
wages. All the terms of the contract are agreed upon when the employee joins the business and if
any of the information therein changes throughout their employment, an updated contract must
be issued.

It is a legal requirement for employers to issue a contract to all staff. While it doesn’t have to be
on their first day, a contract must be signed within the first two months of employment. That
said, all the terms should be agreed verbally beforehand and are still legally binding, this means
the employer must still pay and grant holiday even before the official document is signed. It is
therefore in the best interest of both sides to get the employment contract written up as soon as
possible.

Users of employment contract
This contract can be used by all employers throughout Australia, except the following excluded
employers:

 Non constitutional corporation employers.

 State public sector employers.
 Local Government employers.

If any of the excluded employers wish to use this Employment Contract they should seek legal
advice, as the contract complies with federal legislation which may be more or less generous
than that which applies to those employers.

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 B. Importance’s of employment contracts

Salary: The contract can specify how much the employee is to be paid in a given time
frame. The agreement can also state the frequency of salary payment, as well as what deductions
the employer will make from the salary. The contract can also contain a provision for severance
pay;

Fringe benefits: Fringe benefits are extra benefits designed to supplement an employee’s
salary. Common fringe benefits include life insurance, dental insurance, health insurance, and
pension benefits. Fringe benefits may include paid time off for employee sickness, vacation, or
personal use. Other fringe benefits include use of a company car or expense account. Fringe
benefits also include an employer’s contribution to an employee’s educational degree

Resolution of Disputes: An employment contract may contain a provision as to how

disputes under the agreement are to be resolved. Disputes can be resolved in several ways. The
parties choose the method they prefer. The parties may contract to have disputes submitted to
mediation, or binding arbitration. The parties may provide that a dispute can be submitted to a
court.

Restrictive Covenant: The contract may include a provision known as a restrictive

covenant. Under a restrictive covenant, the employee agrees upon termination not to compete
with the employer. The employee agrees not to seek employment with, or solicit, the employer’s
marketplace competitors. Restrictive covenant provisions contain a geographic area in which the
employee’s activities are restricted. These covenants contain an end date.

Non-disparagement: The employment contract may contain a non-disparagement

provision. Here, employee agrees not to speak unfavorably about the employer. In exchange, the
employee receives a benefit, such as severance pay.

Length of Employment: The contract can specify a work start date and end date. The
agreement can also specify how many hours the employee is to work per day, per week, or
month;

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 C. Types of employment contract

Different types of contract apply, depending on the employment status of the individual. So it’s
important to have correctly determined the employment status of the person you’re hiring before
writing an employment contract. The following are the types of employment contract:-

i. Fixed-term contract

A fixed-term contract is more popular amongst freelancers and contractors as they set an end
date for the employment. For example, a contract could last three months, six month or a year.
The contract can be extended but is put in place to ensure that temporary or contract staff is
given the same rights as those in permanent employment.

The contract will outline the dates of employment as well as the salary and rights that we’ve
already mentioned above. Those who overstay their contract without extending it are considered
to then become permanent employees and must hand in a notice if they want to leave the
company; otherwise they’re free to leave on the agreed end date.

ii. Agency Contract

Agency employees have their contracts agreed and managed by an employment agency or
recruitment consultancy. These employees work on a temporary basis. The length of this contract
will depend on the demand from the employer and employee’s availability as well. Here, it is the
agency’s responsibility to ensure that the rights of its employees are protected. After 12 weeks of
continuous work in the same role, agency workers are given the same rights that permanent
employees get.

iii. Zero-hours worker contracts

The distinguishing feature of these contracts is that there’s no obligation for the employer to
offer a minimum number of hours of work, or for the worker to accept them. This is known as
mutuality of obligation. Workers on zero-hour contracts are still entitled to some statutory
employment rights including the statutory minimum level of paid holiday and the National
Minimum Wage or National Living Wage. It’s also important to note that it’s illegal to require a
worker to work exclusively for you, so you can’t include an exclusivity clause in your worker
contracts.

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 iv. Permanent Contracts
This is perhaps the most common and widely used employment contract. Permanent employment
contracts are provided to those who work for regular hours including both full-time and part-
time. They are paid a salary or by an hourly rate. This contract is ongoing until the employee
leaves the organization by their own will or by the employer.

This contract empowers the employee to a variety of benefits like the specification of working
hours, rights, responsibilities, position in the company and multiple other features.

v. Casual Employment Contracts

Casual employment contracts are perfect for individuals who want security. This type of
contracts includes the employee who wants to assure working hours and an employer who wants
the employee to commit to the business. Here, working hours are not fixed like in a permanent
contract. Both parties agree on a minimum number of hours they will be assured each week or
month. Employees under this contract will accumulate holiday based on the number of hours
worked and will be getting employment rights.

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d) Employment contract format

Steps To Create Employment Contract:

Add employment details: Agreement to employer’s policies, rules and regulations. Some of
these details can even include the job description and the team or department with which the
employee will work.

Mention position related responsibilities: Agreement to the position responsibilities. This

section would specifically mention the employment role, title, and responsibilities followed by
the candidates.

Compensation package: Agreement to the compensation package. It should include the hourly
rate or annual salary information about raises, bonuses, or incentives offered to the employee.

Vacation contract: Agreement to the vacation. Also, explains employee expectations regarding
sick days, family emergencies, or unpaid leave.

Employee benefits contract: Agreement to the benefits. It should explain what does the
compensation plan includes dental, medical, eye and care. offered by the employer.

Add probation period details: Agreement to the probation period for both sides. Explain what
is needed for both parties to entail for the probation before they terminate the relationship.

Performance reviews: Agreement to monthly or quarterly reviews. This involves framing an

overview of the employee’s performance, work, punctuality, and honest feedback from the
senior employees.

Termination: Agreement to how termination would work. Next, enter the amount of notice
each party is required to give to terminate employment. This notice can be based on employment
periods or can be at-will.

Non-Competition: Agreement on how to protect the company. This clause prohibits the
employee from engaging in any activities that directly or indirectly compete with the employer’s
business. and other clauses based on the company’s work attributes.

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An example of an Employment Contract or Sample of Work Contract, How to sign an
Employment Contract, What an Employment Contract looks like and more on Mywage Tanzania

EMPLOYMENT CONTRACT FORMART

This Contract of Employment is entered today…………………of……………………..2014

Between

………….. of P.O Box …….Dar es Salaam, Tanzania hereinafter referred to as ‘’the employer”

And

……………………….…., P. O Box……………….. Dar es Salaam,…..years , Female/Male,

hereinafter referred to as the “employee”).

1.0   Duration of contract

 (Here you specify if it’s for a specific task, permanent or fixed term contract)

This contract is of ….. year (s) starting from ………………to ………………..201...

2.0 Place of Recruitment

………, Tanzania

3.0  Position and Job Description

The Employee shall be employed as …… with the following duties and responsibilities;

(….. here insert the job description in bullet form)

3.1 Job title:…………………………

3.2 Duties:…………………………..

4.0               Probationary Period

This contract is subject to a probationary period of ………… months starting from the
commencement date of employment. The purpose of the probationary period is to assess whether
the employee has the capacity or compatibility required for the job. Where the contract is
terminated during first month of employment, seven days’ written notice is required for either
part.

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 5.0 Remuneration

 The salary period is monthly and the employer shall pay the employee a gross salary of Tsh
……./= (here mention the salary amount in words) per day/week/month (choose whichever
applies)

5.1 The employee shall be entitled to the following allowances/payment in kind/bonuses:………

5.2 The employee agrees to the following deductions:…………………………..

5.3 Contribution to Social Security Funds:……………………………

(Here mention name of your company), will contribute ……% of the employee’s gross salary
towards the …………….pension scheme.  The Employee will contribute ……% of gross salary,
to be deducted from the salary.

6        Hours of work

6.1     The ordinary daily working period shall be from…….. a.m to …..

6.2             The ordinary working week commences on ……… and ends……..

6.3             Overtime may be worked when agreed

6.4             The employee shall be paid overtime at the following rate……..

7   Public Holidays

The employee shall be entitled to basic pay for each paid public holiday. Any work required on a
paid public holiday shall be agreed in advance. Where the employee works on a public holiday,
the employee shall be paid double the basic hourly wage for each hour worked on that day.

8        Leave

9        Annual Leave and Sick Leave

10.0.1 Annual Leave 

The employee is entitled to 28 consecutive days paid leave during 12 months leave.

The employee shall discuss with the employer on the suitable time to take leave.

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10.0.2 Sick leave

Subject to section 32 of the Act, the employee is entitled to 126 day sick leave in any leave
cycle, if supported by medical certificate;

Payment for sick leave shall be calculated as follows:

a) the first 63 days shall be paid full  wages

b) the second 63 days shall be paid half wages

For the purposes of sick leave, a leave cycle means a period of 36 months consecutive
employment from the commencement of date of employment or the completion of the last 36
months leave circle.

The employee shall notify the employer as soon as possible in the event of absence from work
through illness.

10.0.3 Paternity Leave

The employee shall have the right to 4 days paternity leave.

10.0.4 Employee’s obligation

a) The Employee shall meet all the requirements set out by guideline or policy of Here
mention your company name
b) The Employee is obligated to fulfill all duties assigned with due care and prudence.
c) The Employee is not permitted to accept additional employment with a third party or
to engage in any other activities which might directly or indirectly conflict with here
mention your company
d) The Employee will treat all here mention your company information confidentially. 
e) The Employee will not accept any commissions, gifts or other types of benefits in
connection with his/her employment by here mention your company
f) The employee shall take care of here mention your company properties.
g) The Employee will handle all property with care and maintain them in good
condition.

10.0.5 Termination of Employment

This contract may be terminated by either party giving the other one month written notice.

Notice shall be given in writing and shall not be less than the minimum period specified stating
the reasons for termination and the date on which the notice is given.

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Upon termination of the contract of employment, the employer must furnish the employee with a
prescribed certificate of service.

Termination of employment due to misconduct will follow procedures outlined in the labour
laws.

11. GENERAL PROVISIONS

Applicable Law

This Employment Contract shall be governed by and construed in accordance with the
Employment and Labor Relation Act. No. 4 of 2006

The employee hereby certifies that the contract has been read and understood and the employee
hereby agrees to the terms of this employment contract.

EMPLOYER

Here mention your company

Authorized officer’s  name……………………………

Position;………………………………………

Signature;……………………………………..

Date;………………………………………

EMPLOYEE                                    

Name:………………….…… ………….          

Signature ;…………………………..

Date: … ……… ………………………..                    

This contract shall be produced in two authentic copies, to be signed by both parties; one will be
given to the employee and the other will be placed in the personnel file of the employee.

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CONCLUSION

An employment contract sets clear expectations regarding what is required of each party. The contract
“promotion” and “termination” provisions make clear what constitutes satisfactory and unsatisfactory
performance. The contract also makes clear what the employer must do, such as provide a bonus, in the
event an employee exceeds expectations.

By including provisions relating to termination, severance, and resolution of disputes, an employment

contract allows the parties to wind up their relationship in an orderly and predictable fashion. In the event
that a dispute arises as to any matter, the resolution mechanism (mediation, arbitration, or litigation)
provided for by the parties allows for the dispute to be settled.

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