Contracts of Employment (AQA GCSE Business)

Revision Note

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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 Tip

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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