Time Frame

• Employment contracts are typically drafted after you accept a job offer. They go into effect as soon as you start the job.
  
  

Function

• Employment contracts are designed to eliminate confusion regarding pay, work rules and other issues. They're also useful in ensuring both the employer and employee get treated fairly.
  
  

Legality

• Employment contracts are enforced by law. If your employer breaks yours, you may have the right to take legal action against them.
  
  

Verbal Contracts

• The contract doesn't have to be in writing. Verbal contracts exist between an employee and employer as soon as the employee takes the job.
  
  

Changing the Terms

• When your employer wants to change the terms of your contract, you both need to be in agreement of the new terms. When changes affect a written statement, a new statement reflecting the changes must be written within one month.