Discuss the Two (2) Important Distinctions Made in the Literature

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The Answer is There are two important distinctions made in the literature that clarify some definitional aspects of individual contracting. First, the extent and type of individual contracting is described using a taxonomy that separates 'procedural individualism' from 'substantive' individualism. Substantive individualisation refers to situations in which terms and conditions contained in individual employment contracts are different for each employee, reflecting unique outcomes of the rule-making process. Procedural individualisation refers to situations where each individual employee negotiates separately his or her own contract with the employer. In other words, the rule-making process is individualised. This distinction allows us to understand the type of individual contracting that has emerged in Australia. Second, it is important to recognise that there are two different types of individual employment contracts at law: common-law contracts and statutory contracts. Common-law contracts are not only the fundamental unit of labour law in all English-speaking countries, but they were the only form of individual contract at the federal level in Australia before 1996. Statutory individual contracts, which have emerged since 1996, are almost unique to Australia.

Discuss the Two (2) Important Distinctions Made in the Literature

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