Chapter 21 Employment Contracts What is employment b
Chapter 21 Employment Contracts
What is employment? b Employer - The party in an employment contract who pays. b Employee - the party in an employment contract who does the work. b Employment - A contract to pay for supervised work. b Independent Contractor - One retained to accomplish a specific result without supervision.
Where do the Terms of the Employment Contract come From? b b b Express Agreements • Employment for a specific period - employment contract which contains an express term identifying the length of employment. Implied Agreements • Terminable at will - Describes a job in which there is no agreement concerning length of employment. Law provide man Terms
What Employment Duties are Created by the Law? b Obedience • Duty of obedience - The duty that the employee should obey all reasonable orders and rules of the employer. b Reasonable Skill • Duty of reasonable skill - The duty that those who accept work must possess the skill, experience, or knowledge necessary to do it. b Loyalty and Honesty • Duty of loyalty and honesty - The duty that the employee should not commit a fraud upon the employer or reveal confidential information about the business. b Reasonable Performance • Duty of reasonable performance - The duty of an employee to perform assigned duties at the prescribed time an din the prescribed place.
What Duties are Imposed by Law on the Employer? b b Reasonable Treatment Safe Working Conditions Fair Labor Standards Payroll Deductions • Payroll deductions - A legal obligation of the employer to withhold a percentage of the paycheck to cover the employee’s federal and state income tax obligations. • Worker’s Compensation - Payment that compensates employees for injuries that occur on the job. b Duties to minors • Work permit - A document given by the state allowing a person under eighteen years old to work. b Military Service and Voting
How is the Employment Contract Terminated? b Employment Contracts Terminable at Will • Wrongful discharge - when an employer fires an employee for the wrong reason. b Employment Contracts for a Specific Length of Time b Employment Contracts with Governments b Right To Unemployment Compensation • Unemployment Compensation - Governmental payment to lessen consequences of job loss.
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