law

Employment based on contract law is designed to protect both employers and employees by setting out both parties' rights and obligations. It determines exactly what each party must do to fulfill their legal commitments. A contract also lets employees know exactly where they stand with the employer, including such things as wages, hours, and job security. Furthermore, contract law ensures that neither party is able to take unfair advantage of the other. It gives each party the guarantee that any agreement negotiated will be legally binding.