Syllabus Edition

First teaching 2025

First exams 2027

Employment Contracts (Cambridge (CIE) IGCSE Business): Revision Note

Exam code: 0450, 0986 & 0264, 0774

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Employment contracts

  • An employment contract is a legal agreement between the employer and employee, which sets out the terms and conditions of employment

    • It is usually a legal requirement for employers to provide a new employee with a contract of employment 

  • The contract of employment will usually include 

    • The names of employee and employer 

    • Employment start date

    • Working hours

    • Remuneration

    • Holiday entitlement

    • Duties and responsibilities of the role

    • Place of work

    • Sick pay and parental leave

    • Notice period

  • The main types of contract include full-time, part-time, job share and zero hours contracts

    • Often, a business will have a mixture of employees with a range of different employment contracts

Benefits of employment contracts

For the employer

For the employee

  • The contract clearly sets out the rules, such as working hours, duties, and pay, helping to reduce confusion or disputes

  • The contract gives clear information about their job role, working hours, pay, and holidays, so they know exactly what to expect

  • It allows the employer to take legal action or dismiss the employee if they break the contract, such as refusing to work agreed hours

  • The contract provides security, as the employer cannot easily change terms or dismiss the worker without good reason

  • It helps to create a professional relationship, where both sides understand their responsibilities and can work more effectively together

  • If the employer breaks the contract (e.g. underpaying or reducing hours unfairly), the employee has the right to take legal action

Examiner Tips and Tricks

Don’t forget that employment contracts protect both employer and employee – mentioning benefits to each side will make your answers more balanced and exam-ready

Unlock more, it's free!

Join the 100,000+ Students that ❤️ Save My Exams

the (exam) results speak for themselves:

Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.