A contract of employment or contract of service is a legally
enforceable agreement under which the employer’s basic
obligation is to pay wages in consideration for the employee’s
basic obligation to provide service. A contract of service is made
when the offer of employment by the employer is accepted by the
employee. The rights and obligations are enforceable through
Courts as soon as the contract of employment comes into force.
With the amendments to the Employment Act 1955 effective 1
January 2023, the contract of employment needs to be updated in
compliance with the Employment (Amendment) Act 2022. The
new section 101C of the Employment Act 1955 on “Presumption
as to who is an employee and employer” and the relevant
provisions of the Contract Act 1950 will be explained in great
detail in relations to contract of service.