1. What makes a contract of employment?

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This chapter explains the basic conditions that must be met for a contract of employment to be formed.

A contract is an agreement between at least two parties that can be enforced in a court of law. For a contract of employment to be legally enforceable, it must meet the fundamental criteria that exist in all types of contracts.

It does not need to be in writing, although it is obviously easier to prove terms that have been written down.

A legal contract only exists if the following formal conditions have been met:

• offer and acceptance;

• consideration;

• an intention to create legal relations; and

• certainty.

These concepts are explained below.

These formal conditions apply not just to the contract of employment itself but also to any variation or change to the contract once the employment has begun. The rules on changing contracts of employment are explained in Chapter 7.