What is a contract of employment?

• A. A legally binding agreement between employer and employee
• B. A job description
• C. A training manual
• D. A memo from HR

Answer: (A)

A contract of employment is a legally binding agreement that creates the employment relationship between an employer and an employee. It sets out the terms and conditions of work—like the duties the employee must perform, pay, working hours, holiday entitlement, duration of the job, and notice requirements—and the rights and responsibilities of both sides. Because it is legally enforceable, each party is obliged to meet these terms, and breaches can lead to legal action. While a job description describes what the role involves, a training manual shows how to do tasks, and a memo from HR communicates information, none of these alone establishes the formal, enforceable rights and duties that a contract does.