When it comes to employment, one term that is often used is “contractual basis.” But what does it actually mean?
Contractual basis refers to an agreement between an employer and an employee that outlines the terms and conditions of their employment. This agreement, also known as a contract, typically specifies the length of the employment term, the employee`s duties and responsibilities, their salary or wage, and any benefits or allowances they may be entitled to.
Unlike permanent employment, which typically involves an ongoing, open-ended commitment between the employer and employee, contractual employment is usually for a fixed period of time. At the end of this period, both parties can choose to renew or terminate the contract, depending on their needs and circumstances.
Contractual employment is common in many industries, particularly in sectors such as construction, marketing, and project management. It allows employers to hire employees for a specific project or task without the long-term commitment of permanent employment.
There are several benefits to contractual employment for both employers and employees. For employers, it offers flexibility and cost savings, as they can hire staff only when needed and avoid the expenses associated with permanent employment such as healthcare and retirement benefits. For employees, it can provide valuable work experience and networking opportunities and may enable them to work on a variety of projects for different employers.
However, there are also potential downsides to contractual employment. For employees, it can be difficult to plan for the future, as their employment is not guaranteed beyond the term of the contract. They may also miss out on benefits and other perks associated with permanent employment. For employers, turnover can be high as employees may seek more stable, long-term employment elsewhere.
In conclusion, contractual employment refers to a specific type of work arrangement where a contract outlines the terms and conditions of the employment relationship between the employer and employee. While it offers benefits such as flexibility and cost savings, it also comes with potential downsides such as instability and limited benefits. Both employers and employees should carefully weigh the pros and cons of contractual employment before agreeing to a contract.
