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Chapter 21 Employment Contracts. What is employment? b Employer - The party in an employment contract who pays. b Employee - the party in an employment.

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Presentation on theme: "Chapter 21 Employment Contracts. What is employment? b Employer - The party in an employment contract who pays. b Employee - the party in an employment."— Presentation transcript:

1 Chapter 21 Employment Contracts

2 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.

3 Where do the Terms of the Employment Contract come From? b Express Agreements Employment for a specific period - employment contract which contains an express term identifying the length of employment.Employment for a specific period - employment contract which contains an express term identifying the length of employment. b Implied Agreements Terminable at will - Describes a job in which there is no agreement concerning length of employment.Terminable at will - Describes a job in which there is no agreement concerning length of employment. b Law provide man Terms

4 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.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.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.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.Duty of reasonable performance - The duty of an employee to perform assigned duties at the prescribed time an din the prescribed place.

5 What Duties are Imposed by Law on the Employer? b Reasonable Treatment b Safe Working Conditions b Fair Labor Standards b 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.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.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.Work permit - A document given by the state allowing a person under eighteen years old to work. b Military Service and Voting

6 How is the Employment Contract Terminated? b Employment Contracts Terminable at Will Wrongful discharge - when an employer fires an employee for the wrong reason.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.Unemployment Compensation - Governmental payment to lessen consequences of job loss.


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