BSc (Hons) Business Management Level 5

Assignment

Employment contract is defined as an agreement that is being signed between staff members and employer of the organization. This contract creates obligation on both the parties for fulfilling their duties and responsibilities in appropriate manner. Interest and accountabilities of employees and employer is determined in employment contract and it is vital that both the parties should comply with terms and conditions that are being mentioned in agreement. Activities of the organization are completed in proper manner and legal mode when contracts are signed between workers and owners of the firm. According to Bratton and Gold, (2012 )this types of contracts can be signed in verbal or in written manner and it is critical that both the parties should get agrees on various term that are being mentioned under the employment contract. It is critical that legal guidelines and instructions that are given by government of the company should be followed while signing a contract. Proper and better employee relations can be developed when employment contract are signed in legal and appropriate manner. When employment contract are signed by staff members it supports them in saving their rights from any unlawful actions of employers.

Diverse range of terms and conditions are included under employment contract and it includes working hours, sick leave, minimum wages and compensations and DISMISSAL related conditions. It has been described by MARCHINGTON and WILKINSON, 2012 that there are some critical points that are related with employment contract and it has been described by some authors that this contract limits the authority of staff members. This contract is also criticized on the grounds that it creates legal obligation on employees and employers and due to that it creates hurdle in developing better employee relation in the organization.

Zero Hours

There are several advantages of different terms of employment contracts under which management of business focuses upon zero hour. Flexible work environment is created in the enterprise and staff members who wants to do part time work instead of full time work gets benefited from this type of agreements. Moreover extra additional staff can be hired and in hospitality industry it is a advantage. Tourist prefer for visiting a place in particular season and due to it clients comes in hotel.Generally zero hours contracts are also known casual contracts. The term of the same can be referred in term of piece work and on call' work. Here, Thistle hotel can easily get employees on call when company is in need. It proves to be effective to cater need of personnel and provide them good work environment. However, zero hour contracts are used just for the purpose of creating flexible working environment under which workforce and company both get benefit.The benefit which are gained through zero hour contract are many and it provides opportunity to staff members for spending time to build their careers. Workers can give time for their career development and learn new skills and capabilities in free time. Employers gets benefited as their cost is saved for hired for a specific duration of time. It proves to be effective for accomplish pending project so as to ensure long run survival of business with increased rate of return.

As per the norms of government, zero hour contract reflects that workforce are not given work by employees and neither they have to work when asked for the same. It can be critically evaluated that businesses like hotel sector suffer from employee turnover due to their personal issues like financial problems and anxiety (Zero hour contracts, 2016). However, zero hour contract make it possible for Thistle hotel to offer job for all age people at workplace. It proves to be effective for employees to select desired shift and work in the flexible work environment. However, example of universities can be taken under which people are offered part time job. Here, they get opportunity for offer lecture on the basis of hours, in case there is not session for a day they are free. However, if they want to can extend their working hours by working around more lessons.

However, for hotels like Thistle hotel management can make use of such kind of zero hour contract under which workforce are provided opportunities to work on the basis of need. For example, during peak season hotel remain undecided regarding daily outcome. For this purpose, zero hour contract can be used to get some more workforce to handle guests. This aids to manage the work effectively and retain customers for longer time span. At the same time management can retain their reliable staff members by offering them more flexibility at workplace. However, sometime workforce cannot commit for long working hours, then it would be effective to use zero hour contract. This aids to deliver goods quality of services to large number of buyers and provide them good work environment.

The disadvantages of zero hour working might be related to lack of financial stability as workforce do not have guarantee of work. Owing to this, it becomes more riskier for them. At this juncture, people with kids face huge issues as they suffer from lack of money due to short term contract of work.

Part Time Workers

It is another kind of contract under which employees are hired for part time with different terms and conditions. Kersley and et.al., (2013) has defined that Basically part time workers refers to those work work for less time than part time workers. However, part time workers should be paid for sick leave, maternity and paternity as well as adoption leave as well as pay. At the same time, training and career development are also provided in order to increase their expertise. However, pros and cons of part time workers are explained as follows-

The cost of production for Thistle hotel can be lowered down when part time employees work as they are not paid on full time basis. Furthermore, family frequently working practices are provided through which workforce are retained for longer time span. Apart from this, involvement of diverse workforce and ethical practices related to employment make it possible to value for potential clients and customers (Employing part-time workers,2016). At the same time, part time work employment contracts facilitates to reduce work load because regulatory overtime will not be provided. This is because combination of part time and full time workers prove to be effective to reduce work load. This in turn make it possible to ensure good working condition.

However, there are several disadvantages of using part time workers as it increases work load of HR department (The Advantages and Disadvantages of Zero Hour Contracts,2016). Under this business need to hire personnel for part time which tend to increase recruitment cost. However, additional cost related to benefits of training as well as term  of pension is also paid by Thistle hotel. It affects profitability of the business to a great extent. Not only this, but need of supervising will also be increased which will have direct impact on performance of full time workers. Owing to this, focus is laid on reduction of cost of production by catering need of business in an effectual manner.

Term Time Contract

Thistle hotel organization signs Term-time employment contract with individual who wish for providing services as full time employee as school term time. It provides opportunity to people for learning practical skills while studying and completing their degrees.

Wages and compensation that are paid to the the staff members during term time are decided. TAYLOR, (2008) has mentioned that there are some advantages of this contract due to which Thistle hotel company focuses on signing this agreement with people who wish for entering into term time employment contract. Employee's salary are paid in instalments and due to that financial burden on enterprise reduces. Moreover there are various sections that are included under this type of contract and it includes duties and job title, hours of working, place of working, wages and remuneration, collective agreements, grievance procedures and termination of employment. This contract provides advantage for individuals who can work only when there children are at school.

According to PILBEAM and CORBRIDGE, 2010 Employees with child care responsibilities are provided better and effective retention and recruitment through term time working. In addition to this retention rate of staff members also reduces by adopting this method. Women employees having school going children gets opportunities for working according to their flexibility and organization also gets benefited through this. Overall staff turn over rate reduces and term time working option provide a cost effective medium for hiring employees. There are some disadvantages that are associated with this type of contract and due to this effectiveness of this contract reduces. It becomes vital for the organization to hire temporary staff when there are school holidays and it enhances recruitment and training cost of the firm. Under Thistle hotel organization staff members who are working as term time are paid their salary at the end of every month and a fixed amount of salary is paid to them irrespective of working hours for which they have worked.

Fixed Term Contracts

In addition to this fixed term contracts are also signed in Thistle hotel organization between employers and staff members. It has been mentioned by COOK, (2009) that Fixed term contracts are set in advance and duration of this agreements are decided before signing this.

Obligations of fixed term contracts ends when a particular task gets completed. Employees who are working at fixed term contracts are provided same employment opportunities that of full time staff members. This type of contracts is signed in Thistle hotel company with employees who are working on a temporary basis. Duration of contract is decided between both the parties and when a specific task and event gets completed terms of contract also gets ends.It has been explained by ALLEN and BRYANT (2012) that There are some advantages of this contract. Less legal obligations are needed to be faced while signing this contract and employees can be hired on a temporary basis. There are some disadvantages of this contract also and it includes frequent recruitments. This agreement is signed on a temporary basis and due to that it requires that recruitment process should be conducted on a frequent basis for filling the vacant positions of the organization.

Consultancy Employment Contract

Furthermore consultancy agreements are also signed in Thistle hotel organization for completing a specific set of objective. When services of any external agency are taken then this contract is signed by employer and particular consultancy agency. While running the operational activities of the organization sometimes it is required to take assistance from an external service agency. Individuals who are not working as part time or full time employees are involved in signing this type of agreement.TAYLOR and WOODHAMS, (2012) has mentioned that Various terms and services that are related with the services that are needed to be provided by the consultancy agency are included in contract. If any party fails in complying with the obligations that are mentioned in the contract than legal action can be claimed by the innocent party. This type of contract provides advantage for executing the required functions of organization in successful and timely manner. There are some disadvantages also and sometimes consultancy agencies uses this agreement as a tool for saving the parties from various complicated tax related issues.

Conclusion

The aforementioned report concludes that employment contract is very important for the purpose of meeting expectations of both employees and employers. It assists corporation to ensure inclusion of skilled and competent personnel so as to expand business in the marketplace with increased rate of return. It can also be said that fixed and part time workers tend to support growth and development of business. However, part time increases cost of production but assists in reducing work load. Furthermore, zero hour contract and term time are also the effective aspects whereby employees as well as employers both get benefits. It is assertive that employment contracts should be signed in legal and appropriate manner so that rights and responsibilities of employers and staff members can be defined. If any fails in performing duties then innocent party deserve the right to take legal action against the another one.Employment contracts signed in proper way supports in running the desired functions of enterprise in successful and effective mode. There are various benefits that can be reaped by signing employment contract in effective and organized manner. Contract of service is made between employer and employee of the organization and it is vital that all the terms and conditions should be mentioned in the employment contract. It is needed that employer and staff member agrees to get employed on the conditions and terms that are mentioned in the employment contract. It can be concluded that by signing employment contract staff members gets obliged and abide to follow rules, regulations and practices that are set by employer.

References

• ALLEN, D and BRYANT P (2012): Managing employee turnover: myths to dispel and strategies for effective management. New York, Business Expert Press.
• Background
• BARBER, A. (1998) Recruiting employees: individual and organizational perspectives. London: Sage.
• COOK, M. (2009) Personnel selection: adding value through people. 5th ed. Chichester: Wiley.
• MARCHINGTON, M. and WILKINSON, A. (2012) Human resource management at work. 5th ed. London: Chartered Institute of Personnel and Development
• PILBEAM, S. and CORBRIDGE, M. (2010) People resourcing and talent planning: HRM in practice. 4th ed. Harlow: Financial Times/Prentice Hall.
• Recommended
• TAYLOR, I. (2008) Assessment and selection handbook. London: Kogan Page.
• TAYLOR, S. (2010) Resourcing and talent management. 5th ed. London: Chartered Institute of Personnel and Development.
• TAYLOR, S. and WOODHAMS, C. (2012) Managing People and Organisations. London: Chartered Institute of Personnel and Development.
• Kersley and et.al., 2013. Inside the workplace: findings from the 2004 Workplace Employment Relations Survey. Routledge.
• Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.

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