In: Accounting
Elaborate with an example the application of “implied contract of service” in the provision of Employment Act 1955. ( 10 mark)
Under the Employment Act 1955 "Contract of service" is defined as:
“contract of service” means any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that the other agrees to serve his employer as his employee and includes an apprenticeship contract
Implied contract of service
An implied contract is one in which the terms and conditions are inferred by the actions of the parties involved.While an implied contract can be entered into without the intent of one of the parties to complete a particular task or even enter into a contract, the law basically does not care about the party’s intent if the actions implied the existence of a contract. Thus, the obligation to perform the job still exists. This is also known as implied by law.
An Implied contract usually occurs through a written presumption of employment or through an oral agreement of hiring from an employer or representative of the company. These matters generally cement through an oral contract that becomes a written contract of employment or through an employee handbook. Some employees sign employment paperwork through the initial training period or with policies and written assurances that the employer will provide at some point in the first few weeks or months of work. The implied contract then creates the working relationship between the individual and the company that may progress to promotion, changing positions and raises with continued wages