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Employment is the relationship between two
parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview; cropped away black border edge.jpg, 300px, ''Hip, Hip, Hurrah!'' (1888) by Peder Severin Krøyer, a painting portraying an ...
, usually based on a
contract A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview ...
where work is paid for, where one party, which may be a
corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal ...

corporation
,
for profit Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trade ...
,
not-for-profit organization A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that oper ...
,
co-operative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous The federal subject The federal subjects of Russia, also referred to as the subjects of the Russian Federation (russian: субъекты Российск ...
or other entity is the
employer Employment is the relationship between two party (law), parties, usually based on a employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or ot ...
and the other is the
employee Employment is the relationship between two party (law), parties, usually based on a employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or ot ...

employee
. Employees work in return for
payment A payment is the voluntary tender of money or its equivalent or of things of value Value or values may refer to: * Value (ethics) it may be described as treating actions themselves as abstract objects, putting value to them ** Values (Western p ...

payment
, which may be in the form of an hourly wage, by
piecework Piece work (or piecework) is any type of employment Employment is a relationship between two party (law), parties, usually based on employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, n ...
or an annual
salary A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract An employment contract or contract of employment is a kind of contract A contract is a legally binding agreement that def ...
, depending on the type of work an employee does or which sector they are working in. Employees in some fields or sectors may receive
gratuities Image:Restaurant_Tipping_Gratuity_World_Map.svg, 350px, Map showing Gratuity around the world. A gratuity (normally called a tip) is a sum of money customarily given by a client or customer to certain service sector workers for the service they ha ...
,
bonus payment A bonus payment is usually made to employees Employment is a relationship between two parties, usually based on contract A contract is a legally binding document between at least two parties that defines and governs the rights and duties of ...
or
stock option In finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money availa ...
s. In some types of employment, employees may receive benefits in addition to payment. Benefits can include
health insurance Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance Insurance is a means of protection from financial loss. It is a form of risk management Risk management is the identification, ev ...
,
housing Housing, or more generally living spaces, refers to the construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford Eng ...

housing
,
disability insurance Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance Insurance is a means of protection from financial loss. It is a form of risk management Risk management is the ident ...
or use of a gym. Employment is typically governed by employment laws, organisation or legal contracts.


Employees and employers

An employee contributes labor and expertise to an endeavor of an employer or of a person conducting a business or undertaking (PCB) and is usually hired to perform specific duties which are packaged into a
job Employment is the relationship between two parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview; cropped away black border edge.jpg, 300px, ''Hip, Hip, Hurrah!'' ...
. In a corporate context, an employee is a person who is hired to provide services to a
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common pu ...

company
on a regular basis in exchange for
compensation Compensation may refer to: *Financial compensation *Compensation (chess), various advantages a player has in exchange for a disadvantage *Compensation (engineering) *Compensation (essay), ''Compensation'' (essay), by Ralph Waldo Emerson *Compensati ...
and who does not provide these services as part of an
independent business A privately held company or private company is a company which does not offer or trade its company stock In finance, stock (also capital stock) consists of all of the shares In financial markets A financial market is a market in which ...
.


Independent contractor

An issue that arises in most companies, especially the ones that are in the
gig economy Gig workers are independent contractors An independent contractor is a person, business, or corporation that provides good (accounting), goods or Service (economics), services under a written contract or a oral contract, verbal agreement. Unlike e ...
, is the classification of workers. A lot of workers that fulfill gigs are often hired as ''independent contractors''. As a general principle of employment law, in the United States, there is a difference between an agent and an independent contractor. The default status of a worker is an employee unless specific guidelines are met, which can be determined by the ABC test. Thus, clarifying whether someone who performs work is an independent contractor or an employee from the beginning, and treating them accordingly, can save a company from trouble later on. Provided key circumstances, including ones such as that the worker is paid regularly, follows set hours of work, is supplied with tools from the employer, is closely monitored by the employer, acting on behalf of the employer, only works for one employer at a time, they are considered an employee, and the employer will generally be liable for their actions and be obliged to give them benefits. In order to stay protected and avoid lawsuits, an employer has to be aware of that distinction.


Employer–worker relationship

Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity alike, with control forming the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labor productivity in order to achieve a profitable and productive employment relationship.


Labor acquisition / hiring

The main ways for
employer Employment is the relationship between two party (law), parties, usually based on a employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or ot ...
s to find workers and for people to find employers are via jobs listings in newspapers (via
classified advertising Classified advertising is a form of advertising, particularly common in newspapers, online and other periodicals, which may be sold or distributed free of charge. Classified advertisements are much cheaper than larger display advertisements used ...
) and online, also called
job board An employment website is a website A website (also written as web site) is a collection of web page A web page (or webpage) is a hypertext File:Douglas Engelbart in 2008.jpg, Douglas Engelbart in 2009, at the 40th anniversary celebra ...
s. Employers and job seekers also often find each other via professional
recruitment consultant Sourcing is a talent acquisition discipline which is focused on the identification, assessment and engagement of skilled worker candidates through proactive recruitment, recruiting techniques. Professionals specializing in sourcing are known prima ...
s which receive a
commission Commission or commissioning may refer to: Business and contracting * Commission (remuneration), a form of payment to an agent for services rendered ** Commission (art), the purchase or the creation of a piece of art most often on behalf of another ...
from the employer to find, screen and select suitable candidates. However, a study has shown that such consultants may not be reliable when they fail to use established principles in selecting employees. A more traditional approach is with a "Help Wanted"
sign A sign is an object Object may refer to: General meanings * Object (philosophy), a thing, being, or concept ** Entity, something that is tangible and within the grasp of the senses ** Object (abstract), an object which does not exist at ...

sign
in the establishment (usually hung on a window or door or placed on a store counter). Evaluating different employees can be quite laborious but setting up different techniques to analyze their skills to measure their talents within the field can be best through assessments. Employer and potential employee commonly take the additional step of getting to know each other through the process of a
job interview Employment is the relationship between two parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview; cropped away black border edge.jpg, 300px, ''Hip, Hip, Hurrah!'' ...

job interview
.


Training and development

Training and development Training and development involves improving the effectiveness of organizations and the individuals and teams within them. may be viewed as related to immediate changes in via organized instruction, while development is related to the progress of ...
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 Job satisfaction or employee satisfaction is a measure of workers' contentedness with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be measured in cognitiv ...
.


Remuneration

There are many ways that employees are paid, including by hourly wages, by
piecework Piece work (or piecework) is any type of employment Employment is a relationship between two party (law), parties, usually based on employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, n ...
, by yearly
salary A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract An employment contract or contract of employment is a kind of contract A contract is a legally binding agreement that def ...
, or by
gratuities Image:Restaurant_Tipping_Gratuity_World_Map.svg, 350px, Map showing Gratuity around the world. A gratuity (normally called a tip) is a sum of money customarily given by a client or customer to certain service sector workers for the service they ha ...
(with the latter often being combined with another form of payment). In sales jobs and real estate positions, the employee may be paid a
commission Commission or commissioning may refer to: Business and contracting * Commission (remuneration), a form of payment to an agent for services rendered ** Commission (art), the purchase or the creation of a piece of art most often on behalf of another ...
, a percentage of the value of the goods or services that they have sold. In some fields and professions (''e.g.'', executive jobs), employees may be eligible for a bonus if they meet certain targets. Some executives and employees may be paid in
stock In finance, stock (also capital stock) consists of all of the shares In financial markets A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities i ...

stock
s or
stock option In finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money availa ...
s, a compensation approach that has the added benefit, from the company's point of view, of helping to align the interests of the compensated individual with the performance of the company. Under the
faithless servantThe faithless servant doctrine is a Legal doctrine, doctrine under the laws of a number of states in the United States, and most notably Law of New York (state), New York State law, pursuant to which employees who act unfaithfully towards their emplo ...
doctrine, a
doctrine Doctrine (from la, Wikt:doctrina, doctrina, meaning "teaching, instruction") is a codification (law), codification of beliefs or a body of teacher, teachings or instructions, taught Value (personal and cultural), principles or positions, as the e ...
under the laws of a number of states in the United States, and most notably New York State law, an employee who acts unfaithfully towards his employer must forfeit all of the compensation he received during the period of his disloyalty.


Employee benefits

Employee benefits Employee benefits and (especially in British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England ...
are various non-wage compensation provided to employees in addition to their wages or salaries. The benefits can include: housing (employer-provided or employer-paid), 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. In some cases, such as with workers employed in remote or isolated regions, the benefits may include meals. Employee benefits can improve the relationship between employee and employer and lowers staff turnover.


Organizational justice

Organizational justice Greenberg (1987) introduced the concept of organizational justice with regard to how an employee judges the behaviour of the organization and the employee's resulting attitude and behaviour. (e.g., if a firm makes redundant half of the workers, an ...
is an employee's perception and judgement of employer's treatment in the context of fairness or justice. The resulting actions to influence the employee-employer relationship is also a part of organizational justice.


Workforce organizing

Employees can organize into trade or
labor union A trade union (or a labor union in American English American English (AmE, AE, AmEng, USEng, en-US), sometimes called United States English or U.S. English, is the set of varieties of the English language native to the United States. Cu ...
s, which represent the workforce to collectively bargain with the management of organizations about working, and contractual conditions and services.


Ending employment

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 In U.S. labor law, at-will employment is an employer's ability to dismiss an employee for any reason (that is, without having to establish "just cause Just cause is a common standard in United States labor law United States labor law sets the ...
. 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. In some professions, notably teaching, civil servants, university professors, and some orchestra jobs, some employees may have
tenure Tenure is a category of academic appointment existing in some countries. A tenured post is an indefinite academic appointment that can be terminated only for cause or under extraordinary circumstances, such as financial exigency or program discon ...

tenure
, which means that they cannot be dismissed at will. Another type of termination is a
layoff A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing (reducing the ...
.


Wage labor

Wage labor is the
socioeconomic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern society, societies social progress, progress, economic stagnation ...
relationship between a
worker The workforce or labour force is the labour Labour or labor may refer to: * Childbirth Childbirth, also known as labour or delivery, is the ending of pregnancy where one or more babies leaves the uterus by passing through the vagina or ...
and an employer, where the worker sells their
labor Labour or labor may refer to: * , the delivery of a baby * , or work ** , physical work ** , a socioeconomic relationship between a worker and an employer Literature * , an American quarterly on the history of the labor movement * ', an academic ...
under a formal or informal employment
contract A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview ...

contract
. These transactions usually occur in a
labor market Labour economics seeks to understand the functioning and dynamics of the markets Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finlan ...
where
wage A wage is the distribution from an employer of a ''security'' (expected return or profits derived solely from others) paid to an employee. Like interest is paid out to an investor on his investments, a wage is paid (from company earnings) to t ...

wage
s 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 Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner o ...
patents in the United States where
patent rights NPOV disputes from March 2021 A patent is a Title (property), title that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of years in exchange for publishing an sufficiency of di ...
are vested in the original personal inventor. A wage laborer is a person whose primary means of income is from the selling of his or her labor in this way. In modern mixed economies such as that of the
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to st ...

OECD
countries A country is a distinct territorial body or political entity A polity is an identifiable political entity—any group of people who have a collective identity, who are organized by some form of Institutionalisation, institutionalized social ...
, it is currently the dominant form of work arrangement. Although most work occurs following this structure, the wage work arrangements of
CEOs Kea ( el, Κέα), also known as Tzia ( el, Τζια) and in antiquity Antiquity or Antiquities may refer to Historical objects or periods Artifacts * Antiquities, objects or artifacts surviving from ancient cultures Eras Any period before t ...
, professional employees, and professional contract workers are sometimes conflated with class assignments, so that "wage labor" is considered to apply only to unskilled, semi-skilled or
manual labor Manual labour (in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial codification of grammar a ...
.


Wage slavery

Wage labor, as institutionalized under today's market economic systems, has been criticized,. especially by both mainstream
socialists Socialism is a political Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive pr ...
and
anarcho-syndicalists Anarcho-syndicalism is a political philosophy Political philosophy is the philosophical study of government, addressing questions about the nature, scope, and legitimacy of public agents and institutions and the relationships between them. It ...
,... using the
pejorative A pejorative or slur is a word In linguistics, a word of a spoken language can be defined as the smallest sequence of phonemes that can be uttered in isolation with semantic, objective or pragmatics, practical meaning (linguistics), meaning ...
term
wage slavery Wage slavery is a term used to describe a situation where a person's entire livelihood A person's livelihood (derived from ''life-lode'', "way of life"; cf. Old German, OG ''lib-leit'') refers to their "means of securing the basic necessities (food ...
. Socialists draw parallels between the trade of
labor Labour or labor may refer to: * , the delivery of a baby * , or work ** , physical work ** , a socioeconomic relationship between a worker and an employer Literature * , an American quarterly on the history of the labor movement * ', an academic ...

labor
as a commodity and
slavery Slavery and enslavement are both the state and the condition of being a slave, who is someone forbidden to quit their service for an enslaver, and who is treated by the enslaver as their property Property is a system of rights that give ...
.
Cicero Marcus Tullius Cicero ( ; ; 3 January 106 BC – 7 December 43 BC) was a Ancient Rome, Roman statesman, lawyer, scholar, philosopher and Academic skepticism, Academic Skeptic, who tried to uphold optimate principles during crisis of ...

Cicero
is also known to have suggested such parallels. The American philosopher
John Dewey John Dewey (; October 20, 1859 – June 1, 1952) was an American philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about reason, Meta ...
posited that until " industrial feudalism" is replaced by "
industrial democracy Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority In the fields of sociology Sociology is the study of society, human social behaviour, patterns of social relationships, ...
", politics will be "the shadow cast on society by big business". Thomas Ferguson has postulated in his
investment theory of party competitionThe Investment theory of party competition is a political theory Political philosophy is the philosophical study of government A government is the system or group of people governing an organized community, generally a State (polity), ...
that the undemocratic nature of economic institutions under capitalism causes elections to become occasions when blocs of investors coalesce and compete to control the state plus cities..


Employment contract


Australia

Australian employment has been governed by the Fair Work Act since 2009.


Bangladesh

Bangladesh Association of International Recruiting Agencies (
BAIRA Bangladesh Association of International Recruiting Agencies (BAIRA) is an association of recruiting agencies of migrant workers in Bangladesh Bangladesh (, bn, , ), officially the People's Republic of Bangladesh, is a country in . It is th ...
) is an association of national level with its international reputation of co-operation and welfare of the migrant workforce as well as its approximately 1200 members agencies in collaboration with and support from the Government of Bangladesh.


Canada

In the
Canadian province The provinces and territories of Canada () are sub-national divisions within the geographical areas of Canada Canada is a country in the northern part of North America. Its Provinces and territories of Canada, ten provinces and three t ...
of
Ontario ("Loyal she began, loyal she remains") , Label_map = yes , image_map = Ontario in Canada 2.svg , map_alt = Map showing Ontario's location east/central of Canada. , coordinates = , cap ...

Ontario
, formal complaints can be brought to the
Ministry of Labour The Ministry of Labour (''British English, UK''), or Labor (''American English, US''), also known as the Department of Labour, or Labor, is a government department responsible for setting national labour standards, labour dispute mechanisms, employm ...
. In the province of
Quebec ) , image_shield=Armoiries du Québec.svg , image_flag=Flag of Quebec.svg , coordinates= , AdmittanceDate=July 1, 1867 , AdmittanceOrder=1st, with New Brunswick ("Hope restored") , image_map = New Brunswick in Canada 2.svg , ...

Quebec
, grievances can be filed with th
Commission des normes du travail


Germany

Two of the 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, whereas a temporary worker is working under Zeitarbeit or Leiharbeit. Another employment setting is Arbeitnehmerüberlassung (ANÜ).


India

India India, officially the Republic of India (Hindi Hindi (Devanagari: , हिंदी, ISO 15919, ISO: ), or more precisely Modern Standard Hindi (Devanagari: , ISO 15919, ISO: ), is an Indo-Aryan language spoken chiefly in Hindi Belt, ...

India
has Contract Labor, Minimum Wage, Provident Funds Act and various other acts to comply with. Contract labor in India must be paid minimum wage and certain facilities are to be provided to labor. However, there is still a large amount of work that remains to be done to fully implement the Act.


Pakistan

Pakistan Pakistan, . Pronounced variably in English as , , , and . officially the Islamic Republic of Pakistan, is a country in South Asia. It is the world's List of countries and dependencies by population, fifth-most populous country, with a popul ...

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.


Philippines

In the
Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...

Philippines
, employment is regulated by the Department of Labor and Employment.


Sweden

According to Swedish law, there are three types of employment. * Test employment (''swe: Provanställning''), where the employer hires a person for a test period of 6 months maximum. The employment can be ended at any time without giving any reason. This type of employment can be offered only once per employer and in employee combination. Usually, a time limited or normal employment is offered after a test employment. * Time limited employment (''swe: Tidsbegränsad anställning''). The employer hires a person for a specified time. Usually, they are extended for a new period. Total maximum two years per employer and employee combination, then it automatically counts as a normal employment. * Normal employment (''swe: Tillsvidareanställning / Fast anställning''), which 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 (''swe: Arbetsbrist''), cancellation of employment, usually because of bad income for the company. There is a cancellation period of 1–6 months, and rules for how to select employees, basically those with shortest employment time shall be cancelled first. 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. There is a type of employment contract which is common but not regulated in law, and that is Hour employment (''swe: Timanställning''), which can be Normal employment (unlimited), but the work time is unregulated and decided per immediate need basis. The employee is expected to be answering the phone and come to work when needed, e.g. when someone is ill and absent from work. They will receive salary only for actual work time and can in reality be fired for no reason by not being called anymore. This type of contract is common in the public sector.


United Kingdom

In the United Kingdom, employment contracts are categorized by the government into the following types: *
Fixed-term contractA fixed-term contract is a contractual relationship between an employee and an employer that lasts for a specified period. These contracts are usually regulated by countries' labor laws, to ensure that employers still fulfill basic labour rights reg ...
: last for a certain length of time, are set in advance, end when a specific task is completed, ends when a specific event takes place. * Full-time or
part-time contract A part-time job is a form of employment Employment is a relationship between two party (law), parties, usually based on employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit ...
: has no defined length of time, can be terminated by either party, is to accomplish a specific task, specified number of hours. * Agency staff *
Freelancer ''Freelance'' (sometimes spelled ''free-lance'' or ''free lance''), ''freelancer'', or ''freelance worker'', are terms commonly used for a person who is self-employedSelf-employment is the state of working for oneself rather than an employer. Ge ...

Freelancer
s,
Consultant A consultant (from la, consultare "to deliberate") is a professional A professional is a member of a profession or any person who earns a living from a specified professional activity. The term also describes the standards of education and tr ...
s and
Contractors A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a ...
*
Zero-hour contract Zero-hour contract is a term used to describe a type of employment contractAn employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contr ...
s


United States

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 The Internal Revenue Code (IRC), formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large The ''United States Sta ...

Internal Revenue Code
: "For purposes of this chapter, the term “employee” 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." This definition does not exclude all those who are commonly known as 'employees'. “Similarly, Latham’s instruction which indicated that under 26 U.S.C. § 3401(c) the category of ‘employee’ does not include privately employed wage earners is a preposterous reading of the statute. It is obvious that within the context of both statutes the word ‘includes’ is a term of enlargement not of limitation, and the reference to certain entities or categories is not intended to exclude all others.” Employees are often contrasted with
independent contractors An independent contractor is a person, business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered ...
, especially when there is dispute as to the worker's entitlement to have matching taxes paid,
workers compensation Workers' compensation or workers' comp (formerly workmen's compensation until the name was changed to make it gender-neutral) is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment ...
, and
unemployment insurance Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed Unemployment, according to the OECD (Organisation for Ec ...
benefits. However, in September 2009, the court case of ''Brown v. J. Kaz, Inc.'' ruled that independent contractors are regarded as employees for the purpose of discrimination laws if they work for the employer on a regular basis, and said employer directs the time, place, and manner of employment. In non-union work environments, in the United States, unjust termination complaints can be brought to the
United States Department of Labor The United States Department of Labor (DOL) is a cabinet-level department of the U.S. federal government, responsible for occupational safety and health Occupational safety and health (OSH), also commonly referred to as occupational health ...
. Labor unions are legally recognized as representatives of workers in many industries in the United States. Their activity today centers on
collective bargaining Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The int ...
over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions. Larger unions also typically engage in lobbying activities and electioneering at the state and federal level. Most unions in America are aligned with one of two larger umbrella organizations: the AFL-CIO created in 1955, and the
Change to Win Federation The Change to Win Organizing Center (CtW) is a coalition The term "coalition" is the denotation for a group formed when two or more people, factions, states, political parties, militaries etc. agree to work together temporarily in a partnership ...
which split from the AFL-CIO in 2005. Both advocate policies and legislation on behalf of workers in the United States and Canada, and take an active role in politics. The AFL-CIO is especially concerned with global trade issues. American business theorist
Jeffrey Pfeffer Jeffrey Pfeffer (born 23 July 1946, St. Louis, Missouri) is an American business theorist and the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University , mottoeng = "The wind of freedom b ...
posits that contemporary employment practices and employer commonalities in the United States, including toxic working environments, job insecurity, long hours and increased performance pressure from management, are responsible for 120,000 excess deaths annually, making the workplace the fifth leading cause of death in the United States.


Age-related issues


Younger age workers

Young workers are at higher risk for
occupational injury An occupational injury is bodily damage resulting from working. The most common organ Organ may refer to: Biology * Organ (anatomy) An organ is a group of Tissue (biology), tissues with similar functions. Plant life and animal life rely on m ...
and face certain
occupational hazard An occupational hazard is a hazard experienced in the workplace. Occupational hazards can encompass many types of hazards, including chemical hazards, biological hazards (biohazards), psychosocial hazards, and physical hazards. In the United ...
s 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 A traffic collision, also called a motor vehicle collision, car accident, or car crash, occurs when a vehicle collides with another vehicle, pedestrian of Alinga Street and Northbourne Avenue, Canberra Canberra ( ) is the capita ...
at work, due to less work experience, a lower use of seat belts, and higher rates of distracted driving. To mitigate this risk, those under the age of 17 are restricted from certain types of driving, including transporting people and goods under certain circumstances. 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 that are deemed dangerous under the
Fair Labor Standards Act The Fair Labor Standards Act of 1938 (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits employment of Minor (law), mino ...
. Youth employment programs are most effective when they include both theoretical classroom training and hands-on training with work placements. In the conversation of employment among younger aged workers, youth unemployment has also been monitored.
Youth unemployment Youth unemployment is the situation of young people who are looking for a job, but cannot find a job, with the age range being that defined by the United Nations The United Nations (UN) is an intergovernmental organization that aims to ...
rates tend to be higher than the adult rates in every country in the world.


Older age workers

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, because 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.


Working poor

Employment is no guarantee of escaping
poverty Poverty is the state of having little material possessions or income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expresse ...

poverty
, the
International Labour Organization The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice through setting international labour standards. Founded in October 1919 under the League of Nations, it is the fir ...
(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 The poverty threshold, poverty limit, poverty line or breadline is the minimum level of income In microeconomics, income is the Consumption (economics), consumption and saving opportunity gained by an entity within a specified timeframe, w ...
.Claire Melamed, Renate Hartwig and Ursula Grant 2011
Jobs, growth and poverty: what do we know, what don't we know, what should we know?
London:
Overseas Development Institute The Overseas Development Institute (ODI) is a global affairs think tank, founded in 1960. Formally known as the “Overseas Development Institute”, its mission is "to inspire people to act on injustice and inequality through collaborative res ...
For instance, in
India India, officially the Republic of India (Hindi Hindi (Devanagari: , हिंदी, ISO 15919, ISO: ), or more precisely Modern Standard Hindi (Devanagari: , ISO 15919, ISO: ), is an Indo-Aryan language spoken chiefly in Hindi Belt, ...

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. According to the
UNRISD The United Nations Research Institute for Social Development (UNRISD) is "an autonomous research institute within the United Nations that undertakes multidisciplinary research and policy analysis on the social dimensions of contemporary develop ...
, increasing labor productivity appears to have a negative impact on job creation: in the 1960s, a 1% increase in output per worker was associated with a reduction in employment growth of 0.07%, by the first decade of this century the same productivity increase implies reduced employment growth by 0.54%. Both increased employment opportunities and increased labor productivity (as long as it also translates into higher wages) are needed to tackle poverty. 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. This approach does highlight how higher productivity has helped reduce poverty in
East Asia East Asia is the eastern region of Asia, which is defined in both Geography, geographical and culture, ethno-cultural terms. The modern State (polity), states of East Asia include China, Japan, Mongolia, North Korea, South Korea, and Taiwan. ...

East Asia
, but the negative impact is beginning to show. In
Vietnam Vietnam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,, group="n" is a country in Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia or SEA, is the ...

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 The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
, where the gap between productivity and wages has been rising since the 1980s. Researchers at the
Overseas Development Institute The Overseas Development Institute (ODI) is a global affairs think tank, founded in 1960. Formally known as the “Overseas Development Institute”, its mission is "to inspire people to act on injustice and inequality through collaborative res ...
argue that there are differences across
economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with higher levels of socio-economic development tend to have proportionally less of their economies operating in the primary a ...
s in creating employment that reduces poverty. 24 instances of growth were examined, in which 18 reduced poverty. This study showed that other sectors were just as important in reducing
unemployment Unemployment, according to the OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38&nbs ...
, such as
manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector ...
. The
services sector The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sector Image:Economic sectors and income.JPG, 250px, Percentages of a country's economy made up by different sectors. Countries with hi ...
is most effective at translating productivity growth into employment growth.
Agriculture Agriculture is the science, art and practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary Image:Family watching television 1958.jpg, Exercise trends, Increases in sedentary behaviors su ...

Agriculture
provides a safety net for jobs and economic buffer when other sectors are struggling.


Models of the employment relationship

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. In economic theorizing, the labor market mediates all such conflicts such that employers and employees who enter into an employment relationship are assumed to find this arrangement in their own self-interest. In human resource management theorizing, employers and employees are assumed to have shared interests (or a unity of interests, hence the label “unitarism”). Any conflicts that exist are seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts, both of which can and should be managed away. From the perspective of pluralist industrial relations, the employment relationship is characterized by a plurality of stakeholders with legitimate interests (hence the label “pluralism), and some conflicts of interests are seen as inherent in the employment relationship (e.g., wages v. profits). Lastly, the critical paradigm emphasizes antagonistic conflicts of interests between various groups (e.g., the competing capitalist and working classes in a Marxist framework) that are part of a deeper social conflict of unequal power relations. As a result, 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 Human resource management (HRM or HR) is the strategic approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage In business, a competitive advantage ...
(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. These models are important because they help reveal why individuals hold differing perspectives on human resource management policies, labor unions, and employment regulation. For example, human resource management policies are seen as dictated by the market in the first view, as essential mechanisms for aligning the interests of employees and employers and thereby creating profitable companies in the second view, as insufficient for looking out for workers’ interests in the third view, and as manipulative managerial tools for shaping the ideology and structure of the workplace in the fourth view.


Academic literature

Literature on the employment impact of economic growth and on how growth is associated with employment at a macro, sector and industry level was aggregated in 2013.Yurendra Basnett and Ritwika Sen, What do empirical studies say about economic growth and job creation in developing countries? Economic and private sector professional evidence and applied knowledge services https://partnerplatform.org/?7ljwndv4 Researchers found evidence to suggest growth in manufacturing and services have good impact on employment. They found GDP growth on employment in agriculture to be limited, but that value-added growth had a relatively larger impact. The impact on job creation by industries/economic activities as well as the extent of the body of evidence and the key studies. For extractives, they again found extensive evidence suggesting growth in the sector has limited impact employment. In textiles, however, although evidence was low, studies suggest growth there positively contributed to job creation. In
agri-business Agribusiness is the business of agricultural production which involves the production, protection, sales and marketing of the product to satisfy the customers need. The term is a portmanteau of ''agriculture'' and ''business'' and was coined in 19 ...
and
food processing Food processing is the transformation of agricultural products into food Food is any substance consumed to provide nutritional Nutrition is the biochemical Biochemistry or biological chemistry, is the study of chemical processes with ...
, they found impact growth to be positive. They found that most available literature focuses on
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to st ...

OECD
and middle-income countries somewhat, where economic growth impact has been shown to be positive on employment. The researchers didn't find sufficient evidence to conclude any impact of growth on employment in LDCs despite some pointing to the positive impact, others point to limitations. They recommended that complementary policies are necessary to ensure economic growth's positive impact on LDC employment. With trade, industry and investment, they only found limited evidence of positive impact on employment from industrial and investment policies and for others, while large bodies of evidence does exist, the exact impact remains contested. Researchers have also explored the relationship between employment and illicit activities. Using evidence from Africa, a research team found that a program for Liberian ex-fighters reduced work hours on illicit activities. The employment program also reduced interest in mercenary work in nearby wars. The study concludes that while the use of capital inputs or cash payments for peaceful work created a reduction in illicit activities, the impact of training alone is rather low.


Globalization and employment relations

The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations.Budd, John W. (2004) ''Employment with a Human Face: Balancing Efficiency, Equity, and Voice'', Cornell University Press. By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies.
Globalization Globalization, or globalisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spoken in History of Anglo-Saxon England, early medieval England, which ha ...

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 the four major points of concern that affect employment relations: # International competition, from the
newly industrialized countries The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economist An econo ...

newly industrialized countries
, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries. Imports from low-wage countries exert pressure on the manufacturing sector in industrialized countries and foreign direct investment (FDI) is attracted away from the industrialized nations, towards low-waged countries. # Economic liberalization will result in unemployment and wage inequality in developing countries. This happens as job losses in uncompetitive industries outstrip job opportunities in new industries. # Workers will be forced to accept worsening wages and conditions, as a global labor market results in a “race to the bottom”. Increased international competition creates a pressure to reduce the wages and conditions of workers. # Globalization reduces the autonomy of the nation state. Capital is increasingly mobile and the ability of the state to regulate economic activity is reduced. What also results from Lee's (1996) findings is that in industrialized countries an average of almost 70 per cent of workers are employed in the service sector, most of which consists of non-tradable activities. As a result, workers are forced to become more skilled and develop sought after trades, or find other means of survival. Ultimately this is a result of changes and trends of employment, an evolving
workforce The workforce or labour force is the labour Labour or labor may refer to: * Childbirth Childbirth, also known as labour or delivery, is the ending of pregnancy where one or more babies leaves the uterus by passing through the vagina or b ...
, and globalization that is represented by a more skilled and increasing highly diverse labor force, that are growing in non standard forms of employment (Markey, R. et al. 2006).


Alternatives


Subcultures

Various youth subcultures have been associated with not working, such as the
hippie A hippie, also spelled hippy, especially in UK English, was a member of the counterculture of the 1960s The counterculture of the 1960s was an anti-establishment An anti-establishment view or belief is one which stands in opposition ...

hippie
subculture in the 1960s and 1970s (which endorsed the idea of "dropping out" of society) and the
punk subculture The punk subculture includes a diverse and widely known array of ideologies An ideology () is a set of belief A belief is an attitude Attitude may refer to: Philosophy and psychology * Attitude (psychology) In psychology Ps ...
, in which some members live in
anarchist Anarchism is a political philosophy and Political movement, movement that is sceptical of authority and rejects all involuntary, coercive forms of hierarchy. Anarchism calls for the abolition of the State (polity), state, which it holds to ...
squats Squat, squatter or squatting may refer to: Body position * Squatting position, a resting position where the weight of the body is on the feet * Squat (exercise), a lower-body exercise in strength and conditioning Computing and the Internet * ...

squats
(illegal housing).


Post-secondary education

One of the alternatives to work is engaging in post-secondary education at a
college A college (Latin Latin (, or , ) is a classical language A classical language is a language A language is a structured system of communication Communication (from Latin ''communicare'', meaning "to share" or "to be in rel ...

college
,
university A university () is an educational institution, institution of higher education, higher (or Tertiary education, tertiary) education and research which awards academic degrees in several Discipline (academia), academic disciplines. Universities typ ...

university
or
professional school Professional development is learning to earn or maintain professional credentials such as academic degrees to formal coursework, attending conferences, and informal learning Informal learning is characterized “by a low degree of planning and ...
. One of the major costs of obtaining a post-secondary education is the
opportunity cost In microeconomic theory Microeconomics (from Greek prefix ''mikro-'' meaning "small" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Produ ...
of forgone wages due to not working. At times when jobs are hard to find, such as during recessions, unemployed individuals may decide to get post-secondary education, because there is less of an opportunity cost.


Workplace democracy

Workplace democracy is the application of
democracy Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to cho ...

democracy
in all its forms (including
voting system An electoral system or voting system is a set of rules that determine how elections and referendums A referendum (plural: referendums or less commonly referenda) is a direct and universal vote in which an entire electorate is invited to vote ...
s,
debate Debate is a process that involves formal discourse on a particular topic, often including a moderator and audience. In a debate, argument In logic Logic is an interdisciplinary field which studies truth and reasoning Reason is the ca ...

debate
s, democratic structuring,
due process Due process is the legal requirement that the state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * The State (newspaper), ''The State'' (newspa ...
, systems of appeal) to the
workplace A workplace is a location where someone works for their employer or themselves, a place of employment. Such a place can range from a Small office/home office, home office to a large office building or factory. For Industrial society, industriali ...
.


Self-employment

When an individual entirely owns the business for which they labor, this is known as
self-employment Self-employment is the state of working for oneself rather than an employer. Generally, tax authorities will view a person as self-employed if the person chooses to be recognised as such, or is generating income such that the person is required to ...
. Self-employment often leads to
incorporation Incorporation may refer to: * Incorporation (business), the creation of a corporation * Incorporation of a place, creation of municipal corporation such as a city or county * Incorporation (academic), awarding a degree based on the student having a ...
. Incorporation offers certain protections of one's personal assets. Individuals who are self-employed may own a
small business Small businesses are privately owned corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and pu ...
. They may also be considered to be an
entrepreneur Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply ...
.


Social assistance

In some countries, individuals who are not working can receive
social assistance Welfare (or commonly, social welfare) is a type of government support intended to ensure that members of a society can meet basic human needs Maslow's hierarchy of needs is an idea in psychology Psychology is the science of mind and b ...
support (e.g.,
welfare Welfare (or commonly, social welfare) is a type of government support intended to ensure that members of a society can meet basic human needs Maslow's hierarchy of needs is an idea in psychology Psychology is the science of mind and ...
or
food stamps In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly yet still commonly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for Poverty in the United States, low- and no- ...
) to enable them to rent housing, buy food, repair or replace household goods, maintenance of children and observe social customs that require financial expenditure.


Volunteerism

Workers who are not paid wages, such as who perform tasks for charities, hospitals or not-for-profit organizations, are generally not considered employed. One exception to this is an
internship An internship is a period of work experience offered by an organization for a limited period of time. Once confined to medical graduates, internship is used practice for a wide range of placements in businesses, non-profit organizations and govern ...
, an employment situation in which the worker receives training or experience (and possibly college credit) as the chief form of compensation.


Indentured servitude and slavery

Those who work under obligation for the purpose of fulfilling a debt, such as
indentured servant Indentured servitude is a form of labor in which a person is contracted to work without salary for a specific number of years. The contract, called an "indenture", may be entered voluntarily for eventual compensation or debt repayment, or it may b ...
s, or as property of the person or entity they work for, such as
slaves Slavery and enslavement are both the state and the condition of being a slave, who is someone forbidden to quit their service for an enslaver, and who is treated by the enslaver as their property. Slavery typically involves the enslaved per ...
, do not receive pay for their services and are not considered employed. Some historians suggest that slavery is older than employment, but both arrangements have existed for all recorded history. Indentured servitude and slavery are not considered compatible with
human rights Human rights are moral A moral (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. ...
or with
democracy Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to cho ...

democracy
.


See also


Notes and references


General bibliography

* * * * * * * *


External links


Business Link
(archived from th
original
on 29 September 2012) * * {{Authority control