Read an employment contract
Identify core employment-contract terms and explain benefits for both sides of the employment relationship.
Exam scope and assessment notes
Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.
Before you begin
- No previous business study is assumed. Read each scenario for the people affected, the business objective and any limits on time, cost or information.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which item is a main employment-contract term in the syllabus?
What you will learn
- Recognise main contract contents
- Explain benefits to employees and employers
- Use written terms to reduce uncertainty
Make expectations clear
The syllabus lists duties and responsibilities, working hours, holiday entitlement and sick pay as main employment-contract contents.
Clear terms help employees understand what work and conditions are expected. They help employers communicate arrangements, plan staffing and reduce disagreement about agreed responsibilities.
Apply the terms to the job
Contract terms should fit the role and applicable law. A written document cannot make an unlawful term valid, and the syllabus does not prescribe one country's employment rules for every learner.
If a business changes hours or duties, it should follow the agreed process and relevant local requirements rather than assuming it can change terms without discussion.
Pause and explain
Why can written duties benefit an employer?
Worked example
A part-time shop assistant is unsure which evenings they must work. Which contract term should clarify this?
Show the worked solution
- The question is about when work is required.
- Look for the term that records the agreed schedule.
- Consider why clarity helps both sides.
Answer Working hours should clarify the agreed schedule, helping the employee plan and the employer organise staffing.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A new employee is told only that they will work 'when needed'. Name two terms that should be clarified and explain who benefits.
Give me a hint
Use the syllabus examples about schedule and compensation or duties.
Compare my reasoning
- Specify working hours or how schedules are agreed.
- Clarify duties and responsibilities, and any relevant sick-pay arrangements.
- Both sides can understand expectations.
The agreement should clarify working hours or scheduling and the employee's duties; sick-pay terms may also need to be stated. Clear terms help the employee plan and the employer arrange coverage.
Look for these in your work
- Relevant terms named
- Employee benefit explained
- Employer benefit explained
A contract states holiday entitlement but not the process for requesting leave. Explain why adding a process can help while still respecting local rules.
Give me a hint
Distinguish the entitlement from how leave is coordinated.
Compare my reasoning
- The entitlement states what has been agreed.
- A request process can help schedule cover.
- Local legal minimums may also apply.
A clear process helps employees know how to request leave and helps managers plan staffing. The agreed entitlement and process must remain consistent with applicable local requirements.
Look for these in your work
- Two ideas separated
- Planning benefit stated
- Legal condition included
A manager says a contract benefits only the employer. Correct the claim using one benefit to each side.
Give me a hint
Use certainty and expectations rather than assuming interests are always aligned.
Compare my reasoning
- The employee can understand hours or pay-related terms.
- The employer can define responsibilities and staffing expectations.
- Both sides can refer to the agreed terms.
A contract can benefit both sides: the employee can understand duties, working hours and entitlements, while the employer can communicate responsibilities and plan work. The terms must also follow applicable law.
Look for these in your work
- Employee benefit named
- Employer benefit named
- Shared clarity explained
Common mistakes
- Treating a contract as a list of duties only
- Assuming every country uses identical employment rules
- Ignoring the employee's and employer's interests
What can you explain now?
Which item is a main employment-contract term in the syllabus?
Compare with the explanation
Working hours
Working hours are among the specified terms.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
Which contract terms help make the work relationship clear to both sides?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.