What do individual/common law contracts refer to in employment?

Individual or common law contracts in employment refer to agreements made directly between an employer and an employee without the mediation of a collective bargaining process or trade unions. These contracts are typically tailored for high-income earners or specialized roles where negotiation can occur on a more personal level.

This contrasts with collective bargaining, which involves negotiations between employers and groups of employees, often represented by trade unions. Such agreements are structured within a formal industrial relations framework and differ fundamentally from individual contracts.

Additionally, these contracts are not usually subject to extensive government regulation, as they are guided by common law principles and are based on mutual agreement between the two parties. Hence, the focus on high earners and individualized agreements underscores the unique nature of such common law contracts in the employment context.