Benefit of Contractual Employment to the Employee
The normative employment context within the United States is "employment at will," meaning either party can terminate the relationship at any time for any reason or for no reason excepting certain discriminatory reasons that are illegal grounds in themselves. Contractual employment is uncommon, but it does occur and provides significant benefits to the contractual employee.
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Contract
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In certain situations, such as unique jobs or jobs involving high risk to the jobholder, some employment relationships operate under the terms of a specific employment contract.
Primary Benefit
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Principle among the potential benefits of contractual employment is the job security that arises because contractual employment limits the circumstances within which an employer can discharge the employee.
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Secondary Benefits
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Other benefits include clear delineation of employment terms, such as specific job duties included or excluded.
Terms
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Employment contracts can include negotiated terms otherwise beneficial to an employee, as well. Possible "extras" include signing bonus and stock option provisions.
Individual versus Union
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Employees enter into employment contracts in two contexts: individual negotiation with an employer (and legal counsel, usually); or through a labor union. Unions negotiate a group-practice employment contract with an employer or group of employers that covers all union members. Union contracts incorporate similar terms on matters such as conditions for termination, but overall union contracts are broader than individual employment contracts.
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References
- Photo Credit contract image by martin schmid from Fotolia.com
