What is the primary purpose of a contract of employment?

The primary purpose of a contract of employment resides in its function to communicate the duties and responsibilities of the employee. This element is essential because a clearly outlined job description establishes the expectations for the employee’s performance and responsibilities within the organization. By setting forth specific tasks and obligations, the employer can ensure that both parties understand their roles, which is critical for effective workplace operations and performance management.

While financial obligations, working hours, and leave entitlements are important elements often included in an employment contract, they serve more as supplementary details to the core purpose of defining the relationship and expectations related to the work being performed. An employment contract primarily exists to provide clarity on what is expected from the employee in terms of their work duties, which, in turn, aids in minimizing misunderstandings and disputes in the workplace.