Introduction

To have a contract of employment, you first need a contract. A contract is an agreement between at least two parties that can be enforced in a court of law.

A legal contract, including a contract of employment, does not have to be in writing, although it is obviously easier to prove terms that have been written down.

A legal contract must meet several formal conditions. In particular:

• there must be offer and acceptance (see page 7);

• there must be consideration — something given in return for something else;

• there must be an intention to create legal relations; and

• there must be certainty. The terms of the contract must not be too vague to be enforceable;

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 looked at in Chapter 7.