subject: Employment - A Two Party Contract [print this page] If you are watching the news regularly, you might hear analysts talking about rising unemployment rates and fewer employment opportunities, which are probably only two symptoms of a slowing down economy.
And even though most of us have pretty good general idea of what employment means, what is the proper definition?
Employment is a two party contract, with one of the sides being the employer and the other one the employee - the employer can be a large multinational company, bank, small shop owner, basically any person or organization that needs workers to further his commercial enterprise; however, non-profit organizations and charities can be employers as well.
Today, the conditions under which people are employed are very different from the conditions that existed even one hundred years ago; in many countries good labor legislation is in place, which legislation is meant to protect the worker's rights, as well the rights of the employer.
The employer takes up employees and pays them either fixed salary or a wage; the exact amount of the remuneration is usually negotiated between the two parties, but in some countries the minimum wage or salary is defined by law. The employer is also responsible for providing the worker with working conditions that are not hazardous to his or her life or health and quite often is also responsible, either fully or partially, for paying health and retirement premiums. The circumstances under which the employer can terminate the contract are, typically, also regulated by law and when this is done due to downsizing, the employer might be liable for paying compensation to the workers that are let go.
An employee is a person, who takes up employment and provides labor in exchange for payment or other form of compensation. In most instances the success of a commercial enterprise is determined by the owner's vision, the state of the economy, the management, and the quality of the workforce. The employee has certain rights and obligations that are regulated by law and by the contract that he or she has signed; usually the employee has to work certain amount of hours every week, perform his or her tasks and duties, look after the employer's property, serve faithfully and follow reasonable and legal orders from his or her employer. If the employee wants to terminate his or her employment contract, usually he or she has to give an advanced written warning to the employer.
The employer and the employees alike have to know their responsibilities and quite often laws are in place, which laws make provisions against sexual, disability or racial discrimination. Apart from following the legal requirements, it is in the best interest of the employer to provide sound and pleasant working environment, in order to avoid high turnover and it is in the best interest of the employee to perform his or her duties to the best of his or her abilities.
