contract of employment

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A contract by which an employee agrees to undertake certain duties under the direction and control of the employer in return for a specified wage or salary. The contract need not be in writing, but under the Employment Rights Act 1996 the employee must be given a written statement of terms of employment (for details see Statement of Terms of Employment). Implied in every contract are the employer's duty to protect the employee from danger and risks to health, and the employee's duty to do the work to the best of his or her ability. Employees who have been continuously employed in the same business for certain minimum periods have statutory rights, relating for example to unfair dismissal and redundancy, that do not apply to the self-employed. A self-employed person is engaged under a contract for services and owes his employer or customer no other duty than to complete the specified work in accordance with the terms of the individual contract. Termination of a contract of employment in breach of the terms of the contract is wrongful dismissal and may be remedied at law.

Subjects: Business and Management.

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