Employment Contract:
All employees have a contract of employment, whether or not it is written down. Its is an agreement between two or more parties that is legally binding.
The basic elements of a contract include the offer, the acceptance and the exchange of consideration.
Contract can be oral or they can be written. this consists of express terms (clearly & specifically mentioned and agreed like wage or salary, working hours, type of work etc.) & implied terms (These are not expressly or explicitly stated because, in the main, they are fairly obvious to both parties to the contract.
Contract Elements:
The basic elements of a contract include the offer, the acceptance and the exchange of consideration.
Contract can be oral or they can be written. this consists of express terms (clearly & specifically mentioned and agreed like wage or salary, working hours, type of work etc.) & implied terms (These are not expressly or explicitly stated because, in the main, they are fairly obvious to both parties to the contract.
Contract Elements:
- Offer - one party must clearly make an offer of something, usually a service or a good, to another party in exchange for consideration.
- Acceptance - one party must clearly accept the offer, usually done in writing and by payment.
- Consideration - the exchange of value in the contract (i.e. services in exchange for cash payment).
Where as
Psychological Contract:
Psychological Contract:
It was first used in the early 1960's, this term became popular in the early 1990's. It has been defined "The perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other".
The state of the psychological contract is concerned with whether the promises and obligations have been met, whether they are fair and their implications for trust.
Employee's expectations of what the organization owes them and what they owe the organizations.
It is the psychological contract that, effectively, tells your employees what they are required to do, to meet their side of the bargain and what they can expect from the job. although it may not be legally enforceable, a court may be influenced by it in reaching a judgement.
It is often summarized as:
"The expectation that both sides will act fairly, in a trustworthy fashion and deliver on its promises.
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