An employment contract is a contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century.
The foundation for the Employment Contract in the current environment is to ensure that there is balance between the employee/employer rights and obligations that promotes Industrial Harmony.
There are many types of contracts and companies must ensure they use the right terms and templates. As an example, the law makes a distinction between a contract of service and contract for service. Basically, the first applies to an employee-employer relationship, while the latter applies in the case of independent sub-contractors or service providers.
While the rights of both contract of and for service may differ, the laws do protect them under labor laws.
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