This is a frequently asked question. In some countries an employment contract is mandatory (e.g. Russia and China), other countries require certain details to be given an employee in writing (e.g. many EU countries) and some countries do not have any requirements for written terms and conditions. However, an employment contract forms the basis of the relationship between you and the employee - in any dispute this is what the Labour Courts will use to determine issues.
If no written contract exists, the legal position will be that the employee will retain all their statutory rights while the employer’s rights may well not be enforceable. It is, therefore, always strongly advisable to reduce the employment agreement into written terms and conditions which we call the "Employment Contract".
This varies by country. In many countries, the employment relationship is governed by very detailed regulations such as the French Labour Code. In addition, there may be Collective Bargaining Agreements governing different industries. These will set terms which cannot be varied adversely to the employee but more favorable terms can of course be provided. Below are the main terms which are commonly required by most countries to be specified:
Numerous countries require the contract to be in local language. It is permissible for it to be translated in to English but it is important to understand that in the event of any dispute, in the Labour Courts, it is the local language that will prevail.
These are general guidelines, for more information on your specific country or situation, please connect with us.