An employee contributes labor and expertise to an endeavor of an employer or a person conducting a business or undertaking (PCB). An employee is usually hired to perform specific duties that are packaged into a job. In a corporate context, an employee is a person hired to provide services to a company on a regular basis in exchange for compensation, and who does not provide these services as part of an independent business. Employers include individuals who engage businesses or self-employed persons for trade work, as well as businesses that may have significant numbers of employees.
An issue that arises in most companies, especially those in the gig economy, is the classification of workers. Many workers who fulfill gigs are often hired as independent contractors. To categorize a worker as an independent contractor rather than an employee, the independent contractor must agree with the client on the finished work product and then control the means and manner of achieving the desired outcome. An independent contractor offers services to the public at large, not just to one business, and is responsible for disbursing payments from the client, paying unreimbursed expenses, and providing their own tools to complete the job. The relationship is often evidenced by a written agreement specifying that the worker is an independent contractor and is not entitled to employee benefits; the services provided are not key to the business; and the relationship is not permanent.
Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity. Control forms the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labor productivity to achieve a profitable and productive employment relationship.
The main ways for employers to find workers and for people to find employers are via job listings in newspapers and online, also called job boards. Employers and job seekers also often find each other via professional recruitment consultants who receive a commission from the employer to find, screen, and select suitable candidates. A more traditional approach is with a "Help Wanted" sign in the establishment. Employer and potential employee commonly take the additional step of getting to know each other through the process of a job interview.
Training and development refers to the employer's effort to equip a newly hired employee with the necessary skills to perform at the job, and to help the employee grow within the organization. An appropriate level of training and development helps to improve employee's job satisfaction.
There are many ways that employees are paid, including by hourly wages, by piecework, by yearly salary, or by gratuities. In sales jobs and real estate positions, the employee may be paid a commission, which is a percentage of the value of the goods or services sold. In some fields and professions, employees may be eligible for a bonus if they meet certain targets. Some executives and employees may be paid in shares or stock options, a compensation approach that aligns the interests of the compensated individual with the performance of the company.
Employee benefits are various non-wage compensation provided to employees in addition to their wages or salaries. These benefits can include housing, group insurance (health, dental, life, etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. Employee benefits can improve the relationship between employee and employer and lower staff turnover.
Organizational justice is an employee's perception and judgment of employer's treatment in the context of fairness or justice. The resulting actions to influence the employee-employer relationship are also a part of organizational justice.
Employees can organize into trade or labor unions, which represent the workforce to collectively bargain with the management of organizations about working and contractual conditions and services.
Usually, either an employee or employer may end the relationship at any time, often subject to a certain notice period. This is referred to as at-will employment. The contract between the two parties specifies the responsibilities of each when ending the relationship and may include requirements such as notice periods, severance pay, and security measures. A contract forbidding an employee from leaving their employment, under penalty of a surety bond, is referred to as an employment bond. In some professions, some employees may have tenure, meaning they cannot be dismissed at will. Another type of termination is a layoff.
Employers are generally required to report to the government and follow labor law and immigration law to prevent illegal or unreported employment.
Wage labor is the socioeconomic relationship between a worker and an employer, where the worker sells their labor under a formal or informal employment contract. These transactions usually occur in a labor market where wages are market-determined. In exchange for the wages paid, the work product generally becomes the undifferentiated property of the employer, except for special cases such as the vesting of intellectual property patents. A wage laborer is a person whose primary means of income is from the selling of his or her labor in this way.
Wage labor, as institutionalized under today's market economic systems, has been criticized, especially by socialists, using the pejorative term wage slavery. Socialists draw parallels between the trade of labor as a commodity and slavery. Cicero is also known to have suggested such parallels.
Australian employment has been governed by the Fair Work Act since 2009.
Bangladesh Association of International Recruiting Agencies (BAIRA) is an association that focuses on the welfare of the migrant workforce and its approximately 1200 member agencies in collaboration with the Government of Bangladesh.
In the Canadian province of Ontario, formal complaints can be brought to the Ministry of Labour. In the province of Quebec, grievances can be filed with the Commission des normes du travail.
Two prominent examples of work and employment contracts in Germany are the Werksvertrag or the Arbeitsvertrag, which is a form of Dienstleistungsvertrag (service-oriented contract). An Arbeitsvertrag can also be temporary, where a temporary worker is working under Zeitarbeit or Leiharbeit. Another employment setting is Arbeitnehmerüberlassung (ANÜ).
India has options for a fixed-term contract or a permanent contract. Both contracts are entitled to minimum wages, fixed working hours, and social security contributions.
Pakistan has no contract Labor, Minimum Wage, and Provident Funds Acts. Contract labor in Pakistan must be paid minimum wage and certain facilities are to be provided to labor. However, the Acts are not yet fully implemented.
In the Philippines, employment is regulated by the Department of Labor and Employment.
According to Swedish law, there are three types of employment:
Test employment (Swedish: Provanställning): The employer hires a person for a test period of 6 months maximum. This employment can be ended at any time without giving any reason. This type of employment can be offered only once per employer and employee combination.
Time limited employment (Swedish: Tidsbegränsad anställning): The employer hires a person for a specified time. Total maximum two years per employer and employee combination, then it automatically counts as a normal employment.
Normal employment (Swedish: Tillsvidareanställning / Fast anställning): This has no time limit (except for retirement, etc.). It can still be ended for two reasons: personal reason, immediate end of employment only for strong reasons such as crime, or lack of work tasks (Swedish: Arbetsbrist), cancellation of employment, usually because of bad income for the company.
There are no laws about minimum salary in Sweden. Instead, there are agreements between employer organizations and trade unions about minimum salaries and other employment conditions. A common but not legally regulated type of employment contract is Hour employment (Swedish: Timanställning), which can be Normal employment (unlimited), but the work time is unregulated and decided per immediate need basis.
In the United Kingdom, employment contracts are categorized by the government into the following types:
Fixed-term contract: lasts for a certain length of time, set in advance, ends when a specific task is completed, or ends when a specific event takes place.
Full-time or part-time contract: has no defined length of time, can be terminated by either party, is to accomplish a specific task, and has a specified number of hours.
Agency staff
Freelancers, Consultants and Contractors
Zero-hour contracts
For purposes of U.S. federal income tax withholding, 26 U.S.C. § 3401(c) provides a definition for the term "employee" specific to chapter 24 of the Internal Revenue Code. This definition includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation. Employees are often contrasted with independent contractors, especially when there is dispute as to the worker's entitlement to have matching taxes paid, workers' compensation, and unemployment insurance benefits. In non-union work environments, unjust termination complaints can be brought to the United States Department of Labor.
Young workers are at higher risk for occupational injury and face certain occupational hazards at a higher rate. This is generally due to their employment in high-risk industries. For example, in the United States, young people are injured at work at twice the rate of their older counterparts. These workers are also at higher risk for motor vehicle accidents at work. High-risk industries for young workers include agriculture, restaurants, waste management, and mining. In the United States, those under the age of 18 are restricted from certain jobs deemed dangerous under the Fair Labor Standards Act. Youth employment programs are most effective when they include both theoretical classroom training and hands-on training with work placements. Youth unemployment rates tend to be higher than adult rates in every country in the world.
Those older than the statutory defined retirement age may continue to work, either out of enjoyment or necessity. However, depending on the nature of the job, older workers may need to transition into less-physical forms of work to avoid injury. Working past retirement age also has positive effects, as it gives a sense of purpose and allows people to maintain social networks and activity levels. Older workers are often found to be discriminated against by employers.
Employment is no guarantee of escaping poverty; the International Labour Organization (ILO) estimates that as many as 40% of workers are poor, not earning enough to keep their families above the $2 a day poverty line. For instance, in India, most of the chronically poor are wage earners in formal employment, because their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks. Increases in employment without increases in productivity leads to a rise in the number of "working poor", which is why some experts are now promoting the creation of "quality" and not "quantity" in labor market policies. In Vietnam, for example, employment growth has slowed while productivity growth has continued. Furthermore, productivity increases do not always lead to increased wages, as can be seen in the United States, where the gap between productivity and wages has been rising since the 1980s.
Scholars conceptualize the employment relationship in various ways. A key assumption is the extent to which the employment relationship necessarily includes conflicts of interests between employers and employees, and the form of such conflicts. There are four common models of employment:
Mainstream economics: employment is seen as a mutually advantageous transaction in a free market between self-interested legal and economic equals.
Human resource management (unitarism): employment is a long-term partnership of employees and employers with common interests.
Pluralist industrial relations: employment is a bargained exchange between stakeholders with some common and some competing economic interests and unequal bargaining power due to imperfect labor markets.
Critical industrial relations: employment is an unequal power relation between competing groups that is embedded in and inseparable from systemic inequalities throughout the socio-politico-economic system.
The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations. Globalization has affected these issues by creating certain economic factors that disallow or allow various employment issues. Economist Edward Lee (1996) studies the effects of globalization and summarizes four major points of concern that affect employment relations:
International competition will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries.
Economic liberalization will result in unemployment and wage inequality in developing countries.
Workers will be forced to accept worsening wages and conditions, as a global labor market results in a "race to the bottom."
Globalization reduces the autonomy of the nation state.
Various youth subcultures have been associated with not working, such as the hippie subculture in the 1960s and 1970s and the punk subculture.
One of the alternatives to work is engaging in post-secondary education at a college, university, or professional school. One of the major costs of obtaining a post-secondary education is the opportunity cost of forgone wages due to not working.
In some countries, individuals who are not working can receive social assistance support to enable them to rent housing, buy food, repair or replace household goods, maintain children, and observe social customs that require financial expenditure.
Workers who are not paid wages, such as volunteers who perform tasks for charities, hospitals, or not-for-profit organizations, are generally not considered employed. One exception to this is an internship, an employment situation in which the worker receives training or experience as the chief form of compensation.
Those who work under obligation for the purpose of fulfilling a debt, such as indentured servants, or as property of the person or entity they work for, such as slaves, do not receive pay for their services and are not considered employed. Indentured servitude and slavery are not considered compatible with human rights or with democracy.
Self-employment is another alternative to traditional employment.
Local employment initiatives aim to ensure that residents of the area adjacent to an employers' premises are offered employment there. Local jobs initiatives are common in a construction context. In retail, the Westfield Centre in west London, which opened in 2008, has been noted as an example offering employment to local residents.
This article is based solely on the supplied corpus. No external sources were consulted; claims that could not be substantiated against the corpus were omitted under the drop-the-claim rule.
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