Contracts of Employment (AQA GCSE Business)

Revision Note

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Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Full-time Contracts

  • Full-time employment is when an employee works the total number of hours considered by the company as full-time in a week

  • Full time employees work more hours in a company than part-time employees

    • In the UK labour full-time employees are classified as those that work 35 hours a week or more

Part-time Contracts

  • Someone who works part-time may only work two or three days a week

  • Part-time employment may be more flexible and can be adjusted subject to employee availability and employer requirements

    • Part-time employees at the US company Costco work between 24 and 40 hours per week

  • Job sharing is the process of breaking up a role into two part-time contracts (in rare cases, the job share may occur between more than two workers)

  • The choice between full-time and part-time contracts depends on the specific needs of both employers and employees

    • Employers often value the commitment of full-time staff but also the flexibility of part-time workers

    • Employees may prioritise a stable income or a good work-life balance

Benefits of Full-time and Part-time Employment Contracts

Contract

Benefits for Employers

Benefits for Employees

Full-time

  • Full-time employees are typically more committed and invested in the businesses success

  • Employers can rely on full-time staff to work a standard number of hours per week

  • Scheduling and coordinating work among full-time employees is straightforward

  • Full-time employment provides a steady income and financial stability

  • Full-time employees often receive benefits like pension plans and paid time off

  • Full-time employees often have more opportunities for career development

Part-time

  • Part-time employees allow for flexibility in staffing, as part-time hours can be changed according to business needs

  • Part-time employees often cost less in terms of wages and benefits

  • Part-time workers are often a good source of candidates for internal recruitment

  • Part-time work offers more flexibility and work-life balance

  • It is an excellent option for students, parents, or those with other commitments

  • Employees can hold multiple part-time jobs to increase their income and experience

Casual Contracts

  • An employee engaged on a casual contract works whenever the business needs them

  • This may be seasonal (summer or winter) or for a determined length of time

    • E.g. A ski instructor working for two months during a ski season at a resort in the French Alps

  • A zero hours contract is where an employee agrees to be available for work as and when required, with no particular number of hours or times of work specified

    • In the UK, zero-hour contracts are controversial

      • Trade unions and the media have accused businesses, such as Sports Direct, of using them to exploit workers

      • In 2015, UK employers were banned from offering zero-hour contracts that prevented employees from working for another employer at the same time

Examiner Tips and Tricks

You do not need to demonstrate detailed legal knowledge of the different types of employment contract. It is more important that you weigh up the benefits and drawbacks of employment contracts for both employers and employees.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.