CONCEPT OF EMPLOYMENT
Employment refers to an occupation in which people work for others and get remunerated in the form of salaries or wages. The service is provided under the agreement of employment. The persons who work for others are known as employees, such as managers, assistants, clerks, peons, workers etc. and the person who provides employment is known as employer. So persons undertaking to render personal services under some agreement, in return for salaries or wages, are working under employment. Characteristics of Employment1. Personal Services. An employment commences when a person joins some organization for providing personal services. The services will have to be provided by the same person and not by anybody else in his place.
2. Employee-Employer Relation-ship. Under employment, there is a relationship of employee and employer. The person who offers to work is called employee and the one who employs the person is called employer.
3. Contractual Relationship. An employment is created under contractual relationship. The agreement contains the terms and conditions of employment, nature of work, remuneration etc.
4. Reward or Return. An employee gets remuneration for doing a work. The employees are paid their remuneration irrespective of profit or loss to the employer. There is no risk involved in employment because wages/salaries have to be paid. 5. Capital Investment. The persons working under the contract of employment are not required to invest any money in the business. The investments are done by the employer and not by employees.
Characteristics of Employment
6. Following Services Rules. An employee is required to obey the service rules prescribed for his job. Any violation of service rules may render an employee to face punishment.
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