Employment

From ArticleWorld

Employment refers to a contract between an employer and an employee. The employer is typically a business with the objective of creating profits (or, in the case of the nonprofit or public sectors, in raising funds). The employee provides labor in a specific skill set for hourly wage or a yearly salary. Employment is universal in capitalist societies. When one is not employed, unemployment exists.

Employers

The person or business that hires workers is referred to as an employer. An employer hires workers to provide labor for wages. An employer is a broad term that applies to anyone who pays someone for his or her services, including individuals who hire a babysitter or housecleaner, governments, nonprofit businesses and corporate entities.

The employer has control over his, her or its land and capital and is the one named in any contracts or legal documentation in regards to the service or business. Typically, the employer maintains ownership of all intellectual property that the employee creates while under employment.

In some large organizations, employment is managed by a human resources department.

Workers

Any person an employer hires is an employee. This person typically is hired based on his or her skill set in order to perform a job.

Employees can work for hourly wages or a yearly salary. They can be full-time or part-time. Some may be hired for a short term, contract or temporary position. These employees are generally viewed in different terms in regards to the legal obligation an employer holds to them.

Companies can offer employees a variety of benefits, including health insurance, life insurance, retirement and pension plans. Extra “perks” some companies may decide to offer include access to a health club, daycare on premises, deferred spending accounts and seasonal bonuses.

Other terminology

If an individual owns the business for which he or she works, he or she is considered “self-employed.” Self-employment can lead to incorporation, which offers protection of personal assets. That is, should the person be sued for something related to his or her job, the personal assets would be protected in the lawsuit.

The term volunteer is used to designate an individual who does not work for wages. Generally, this is not considered employment.

Slaves are not considered employees, but the term is used to designate someone who works to fulfill a debt without pay.