What does a contract of employment primarily establish?

A contract of employment primarily establishes a legal framework that outlines the terms and conditions governing a worker's job. This comprehensive document details critical elements such as the roles and responsibilities of the employee, the working hours, salary, benefits, duration of employment, grounds for termination, and any other specific conditions that may apply to the workplace.

This clear articulation ensures that both the employer and the employee have a mutual understanding of their obligations and expectations, which is essential for maintaining a professional relationship and ensuring compliance with labor laws. By defining these parameters, the contract serves to protect both parties in the event of disputes or disagreements regarding employment terms.

Other options provided do not encapsulate the full purpose of a contract of employment. For instance, a contract does not solely focus on employee rights or serve as just a verbal agreement; it goes beyond that to detail the entire working arrangement. Similarly, it is not merely a summary of company policies and procedures, as that type of document would not provide the necessary legal basis to govern the employment relationship.