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Unit 2 Introduction

This document discusses the contract of employment. It begins by explaining that the Labour Act provides for mediation and arbitration to resolve industrial disputes between employees and employers. It then defines the employment relationship as involving the connections between employers and employees at the workplace, consisting of both formal and informal agreements. The main focus is on the legal contract of employment, which forms the basis of the undertaking where an employee offers their skill and effort in exchange for a wage from the employer. The unit will cover the nature of employment contracts, differences between contracts of service and contracts for work, formation of contracts of service, rights and duties of employers and employees, employment of certain groups, and contract termination.
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0% found this document useful (0 votes)
63 views2 pages

Unit 2 Introduction

This document discusses the contract of employment. It begins by explaining that the Labour Act provides for mediation and arbitration to resolve industrial disputes between employees and employers. It then defines the employment relationship as involving the connections between employers and employees at the workplace, consisting of both formal and informal agreements. The main focus is on the legal contract of employment, which forms the basis of the undertaking where an employee offers their skill and effort in exchange for a wage from the employer. The unit will cover the nature of employment contracts, differences between contracts of service and contracts for work, formation of contracts of service, rights and duties of employers and employees, employment of certain groups, and contract termination.
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XXXXXXX 2 THE CONTRACT OF EMPLOYMENT

UNIT Unit X, section X: XXXXXXX

The Labour Act has made provisions as to how industrial disputes may be
resolved using mediation and arbitration. The Arbitration and Mediation
Service can resolve disputes arising between employees and employers
when negotiation between the two parties fails. In order to have a dispute
resolved via arbitration or mediation both parties must agree, and endorse
the appointed mediator or arbitrator.

Whenever employers and employees work together, an employment


relationship is established. The term employment relationship has been
defined by Armstrong (2006) as involving the interconnections that exist
between employers and employees at the worksite. It consists of the formal
and informal understandings between the employing organization and the
employed individual. The employment relationship has been and continues
to be the main vehicle through which employees gain access to their rights
and benefits associated with employment. A balanced fulfillment of an
employment relationship is a sign of equity which is necessary for a
continuing and harmonious interaction between employees and their
employers. Thus, the starting point of the employment relationship is an
undertaking by an employee to offer skill and effort in exchange for which
the employer provides the employee with salary or a wage. This undertaking
is founded on a legal contract of employment which is the main focus of
unit 2.

Unit 2 covers the nature of the employment contract, the fundamental


differences between contract of service and the contract for service, the
formation of a contract of service, the rights and duties of employees and
employers under the contract of service, the employment of certain groups
of people, and termination of the employment contract.

Upon successful completion of this unit, students should be able to:


 explain employment contracts, and describe the three types of contracts
in Ghana
 differentiate between the contract of service and the contract for service;
 gain an understanding of the legal framework governing the
employment contract;
 list the most common rights and duties of employees and employers
under the employment contract;
 recognise the legal principles underlying the employment of certain
groups of people in Ghana; and
 advice management on the consequences of certain types of employment
termination

42 UEW/IEDE
LABOUR LAWS AND
This page is left blank for your notes INDUSTRIAL RELATIONS

UEW/IEDE 43

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