Understanding job Contracts

Just got a new job? Great news! But you probably need some help Understanding job Contracts to sign all your documentation, confidently. Get an idea here of what to expect and how your rights are protected.

Just landed a new job and have to sign some important documents? Don’t just sign your life away! Need help understanding job contracts? We have all you need to know right here. Sign your next contract, confidently.  

What is a job Contract?

A job contract is an agreement between an employer and employee that covers the working relationship between both parties. The purpose of this is so both parties fully understand their obligations and terms of employment. 

How do job Contracts Work?

Job contracts contain all the important information about your new role. A job contract should include the following:  

  • Basic Information: This covers all your personal details. Your name and surname, address, ID number and more.
  • Salary or wages: The agreed salary or wage will be in your contract. 
  • Schedule: In some cases your contract will include the day and hours you are expected to work. 
  • Duration of Employment: Your contract should specify the length of time the employee agrees to work for the company. 
  • General Responsibilities: A list of the various duties and tasks a worker will be expected to fulfill while employed.
  • Confidentiality: Some contracts will include a section on confidentiality. Ask your employer about anything you are unclear on if this happens to be in your contract.   
  • Benefits: Your contract should lay out all your benefits. Things like health insurance, vacation time and other perks. 
Two professionals discussing job contracts. Need help Understanding job Contracts? Get help here.

Types of job Contracts

Each employment agreement is different and will differ depending on the type of job contract you have. Understanding job contracts becomes easier once you get an idea of what type of agreement you have. 

Permanent job Contracts

These are for employees who work regular hours and are paid a salary or hourly rate. These contracts are ongoing until terminated. Permanent employees are entitled to the full range of lawful employment rights. 

Fixed-term Contracts

Here you will have a fixed date for your employment. This type of contract is usually for interns or when companies are completing big projects. Fixed-term employees are protected and have the same rights as permanent employees. 

Casual Employment Contracts

Casual employees don’t have a fixed worked schedule. The contract should specify the minimum number of hours that you are expected to work each month. These types of contracts are usually for entry level workers or retail work. 

A professional signing a job contract. Need help Understanding Job Contracts? Get help here!

Pros and Cons of a Job Contract

Job contracts are there to protect you. While it is possible to go into an unwritten agreement, it is best to have documentation if anything should happen at your workplace. 


Listed below are the pros attached to job contracts: 

  • More security. 
  • Explains duties and responsibilities of employees. 
  • Protects employer and employee. 


While signing a job contract is hardly ever a bad thing, there are some cons attached to them: 

  • Legally binding. 
  • Limits flexibility.
  • Can only be altered when negotiations occur.

Protect yourself and know your rights. Read through your job contract carefully before signing them.  

Sign Your Next job Contract, Confidently!

Want to take your career to the next level? Sign up for our courses. Speak to a course consultant today: 

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Last Updated: December 15, 2020


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Andrea Petersen
Andrea Petersen
I am dedicated to creating engaging online content. I enjoy reading, writing and popular culture. House Ravenclaw. View my LinkedIn