The consensus among our HR experts is that this is a great idea. This can be done at any time, especially if you and your employee agree to the terms and conditions. But the sooner you do it, the better; both parties will benefit from a documented agreement. Whether written or verbalized, each contract must be based on the following criteria: be sure to check your state`s laws or the fraud law if you are unsure whether or not a written agreement is necessary. If you do not have a written contract, you must provide evidence to support your version of the truth. In the case of an oral agreement, this may include all exchanged emails or text messages, payslips, etc. A written contract is certainly one of the most proactive steps entrepreneurs can take to ensure that their employees know what is expected of them. There is no doubt that there will be a question of working time, allowances or wages during the employment. Written contracts offer all of this from the beginning, so there is no confusion. For an employee, this can be detrimental if the employee wishes to challenge his or her right to positions such as bonuses, commissions, leave and promotions. However, in some cases, the absence of a written employment contract benefits a worker precisely because a properly worded job tends to limit a worker`s rights to the minimum rights required. To win the case, the aunt must prove with evidence that her nephew lent the money with the intention of repaying it, while the nephew must prove that he did not accept.
Without the documentation of the agreement, it will be a matter of er-she-said. In the end, it is a judge who decides which case is most likely of the party. Oral contracts may be easier and shorter, but they do not come without problems and can be extremely difficult to prove. They must not only prove the existence of the agreement, but also the agreed terms. Basically, it is the word of one person against another. In the event of a dispute, this can make a legal process with former employees complex and chaotic. A proven method would be to sit down with your co-worker and confirm and sketch everything that has been agreed orally. Prepare a formal employment contract and submit it to the employee. Fear not, in Hong Kong, oral employment contracts are legal under the Labour Regulation (Cap.