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S.2 of the Employment Act of 2006 to mean any contract; oral or in writing, express or implied,
where a person agrees in return for remuneration to work for an employer and includes a contract
employee must be regulated by the Act unless the variation is in the favour of the employee as
Owing to the fact that it is a contract and the authoritative submissions of court in CARLILL V
CARBOLIC SMOKE BALL COMPANY (1893) 1 QB 256, there must be offer, acceptance and
contractual principles. For example the equivalent of offer and acceptance in contract law is the
hiring of the employee whereby as soon as the employee is recruited, then it can rightly be
argued that an offer has been made by the employer and the employee accepted it and at the same
time giving consideration in form of service or skill offered and the law on dismissal is based on
breach of contract*
Some of the key features of a contract of employment do include the following as discussed
below.
1. The parties to the contract. Under S.59 (1)(a) of the Employment Act, an employment
contract should clearly state who are the parties to a contract. This is in line with the
doctrine of privity of contract which provides that only parties to a contract can sue or
enforce their rights or claim damages under the contract as was observed in DUNLOP
maintenance was unenforceable as a matter of privity. Therefore this will allow the
employee and employer to know what rights each party possesses in case of any breach
of contract*
2. The job title or description as stipulated under S.59(1)(C). This defines the relationship
between the employee and the employer because it gives the employee a road map of the
activities he is supposed to undertake and also enables the employer to enlist their
expectations from him since it has been held in CHARDWICK V PIONEER PRIVATE
TELEPHONE LTD (1941) 1 ALL ER 522 that a contract of service comprises some
degree of control by the master. The job description also avoids liability on the part of the
employee especially when acting within the scope of his employment as seen in the case
may be done in the course of the servants employment so as to make his master liable
even though it is done contrary to the orders of the master. On the other hand, it also
avoids liability on the part of the employer especially if the employee acts outside the
should be provided before termination and this takes into account the length of time
served, position served, the pay and the nature of work. This is because in default of
notice of a specified period, the employee is entitle to receive pay in lieu of notice and
even where no period for notice is stipulated compensation will still be awarded
Under S.66 of the Employment Act, there should also be a provision for a fair hearing before
something wrong to be in position to en know the accusations before him and prepare and
prepare a defence accordingly as emphasized in RIDGE V BALDWIN where it was held that
the the principles of natural justice that is procedural fairness require a fair hearing to be
Under S.96(1) of the Employment Act, the employment contract should also provide for
summary dismissal in certain instances. This dismissal is without notice but for it to be
justified, the breach of the employee must be a serious one to amount to an employees
AIRLINES (1984) HCB. Hence this is supposed to prevent gross misconduct on the part of
Lastly, the contract should provide for a salary or wage for the employee in legal tender
through any mode of payment such as through the bank, postal order or direct payment to the
employees bank account as stipulated under SECTION 41(1), (2) and SECTION 59(1)(e) of
the Employment Act 2006. A provision for deduction especially in terms of taxes, pension
fund, rent and accommodation should be added upon consent of the employee as required by
S46 of the Employment Act. This is aimed at alerting the employee of the salary he is entitled
to at all times even though he is absent from work unless the contract has an express term
stating otherwise and the burden is on the employer to prove such a term as per Justice
formal relationship between the employer and employee and their respective responsibilities
so as to promote the principle of natural justice and good working conditions as required by