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.