Contract of Service

​A contract of service means an agreement, whether verbal or in writing, where a person binds him/herself to render service to, or to do work for, an employer in return of wages. Thus even a verbal agreement between an employee and an employer is valid and is enforceable by law.

In those cases where no written contract of employment has been signed between the employee and the employer, the latter is bound to give the employee a signed statement which should include the following details:

 

»  the date of commencement of employment;

»  the period of probation;

»  the normal rates of wages payable;

»  the overtime rates of wages payable;

»  the normal hours of work;

»  the periodicity of wage payments;

»  in the case of a fixed or definite contract of employment, the expected or agreed duration of the contract period;

»  the paid holidays, and the vacation, sick and other leave to which the employee is entitled;

»  the conditions under which fines may be imposed by the employer;

»  the title, grade, nature or category of work for which the employee is employed; 

»  the notice periods to be observed by the employer and the employee should it be the case;

»  the collective agreement, if any, governing the employee’s conditions of work; and any other relevant or applicable condition of employment.

STATEMENT BY THE EMPLOYER​

Where a written contract signed between the employer and the employee exists, the above information should also be included in the contract. In any case, if the period of employment exceeds one month and exceeds eight hours of work a week, a copy of the contract of service or the statement signed by the employer should be given to the employee by not later than eight working days from the commencement of employment and the employer is required to keep a copy.