...Employment contracts are entered usually before employment begins and offer protection for both employers and employees, although contracts usually favor the employer. Employment contracts often contain key advantages for the employer, such as establishing an employee's minimum employment length. If were to sign an agreement to not work for a competitor during the two year period while employed under a contract with a company or 2 years after employment within the same metropolitan area this is only enforceable if all elements within the contract are met. In order for a contract to be enforceable all elements must be met; the main two elements are concepts of offer and acceptance, but even in these circumstances it is hard to enforce a non-compete agreement. We will look into the elements of employment contract, the UCC, and when a non-compete agreement is unenforceable. Contract A Contract is a voluntarily agreement entered by two or more parties in order to create a legal obligation and bind the persons that are entering in contract. A contract is only considered to be valid if all elements are met within the contract. So, within a contract there are essential elements which include; offer, acceptance, legal consideration, capacity, and purpose. A contract may be written or oral; the nature of the contract depends on the mutual consent of both parties. Written contracts generally have a longer statute of limitations and are an overall safer contract to enter into because...
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...In a organization psychological contract is a essential part of positive employee relationship. It requires interaction & communication between employer & employee. Basically psychological contract is the`mutual beliefs, perceptions and informal obligations between an employer and employee (D.Rousseau,1989). It can be distinguished from the legal employment contract. It is the perception of both employee and employer, of what are their mutual obligations towards each others. It can be more influential than the formal written contract in affecting how employees behave from day to day, their motivations and their commitment to the organization. Levinson (1962), the father of the concept of psychological contract defined it as an unwritten contract. According to his concept psychological contract is the sum of the mutual expectations between the organization and employees. Psychological contracts are mental models or schemas that develop through an individual’s interactions and experiences (Levinson, 1962) The psychological contract is playing an increasingly important role in helping to define and understand contemporary employment relationship (Millward & Brewerton, 1999). The psychological contract tells employees what they are required to do in order to meet their side of the bargain and what they can expect from their job. It offers a valid and helpful framework of thinking about the employment relationship, especially against a background of a changing labour market and...
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...Contract Versus Direct Employee We have all be there, sitting in our offices, staring at the walls wondering is this it? Am I going to be stuck in this same position until I retire? Are any other opportunities going to come my way? Then before you know it opportunity comes across your desk that would allow you to have more flexibility, freedom and a chance to earn more money. Do you do it? The only catch is, you give up your position as a permanent employee and become a contractor. When someone chooses to become a contractor it allows them to try other jobs, see what is out there and get a chance to get experiences that they wouldn’t normally get if they were stuck with one role for the rest of their professional life. Being a contractor is more advantageous than working direct by allowing flexibility and pay. One major reason contract work is very alluring is the pay and the fact they are paid double what an average employee will make in an hour. They are able to negotiate more freely with an agency on how much they wish to be paid versus someone in a more direct position that is able to negotiate, but if the offer returned doesn’t exceed their expectations, then there is the chance they can decide to go with someone else who will take lower pay. The bottom line is you can usually make a lot more money as a W-2 or 1099 contractor/consultant than a salaried position. In a contract role, if a company doesn’t match what you are asking for there is more wiggle room. The agency...
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...Advantages and Disadvantages of Outsourcing for Outsourced Employee Iman Nuraprianto GLS 470 – 12TW1 Jennifer Zoller Southern New Hampshire University December 8, 2012 Abstract Outsourcing is contracting with an outside party (vendor) to do a particular function. Basically, the function being outsourced is considered non-core to the business. This paper explores the advantages and disadvantages of outsourcing for outsourced employee. The advantages of outsourcing are more experiences, opportunity to get expertise in particular job, and manageable time & planning to the next job. In contrast, disadvantages of outsourcing are low salaries, poor employee benefits and uncertainty for continuing job. This paper describes, even though outsourcing discriminates outsourced employee, there are some benefits for outsourced employee. Advantages and Disadvantages of Outsourcing for Outsourced Employee What is the definition of outsourcing? According to Caruth, L. & Caruth, D., “Outsourcing is the process of contracting with an outside party (vendor) to perform company functions that were previously perform in-house” (2010). Outsourcing has been used by company in difference sector businesses, such as retail, manufacturing, information technology, banking & finance. Medforth argued that “outsourcing support a company to change magnitude in almost every aspects: increase in profits, productivity, business value, business performance...
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...~ v1.0 August 2014 ~ v1.0 Employee Benefits Operational Plan Employee Benefits Operational Plan Contents Contents 2 1. Introduction 3 2. Context 3 1.1. Environment 3 1.2. Industry 4 1.3. Stakeholders 5 1.4. SWOT 6 3. References 9 4. Annexures 10 8.1. Annexure A: PESTEL analysis 10 8.2. Annexure B: Porter’s Five Competitive Forces 11 8.3. Annexure C: SWOT analysis 12 1. Introduction The Employee Benefits operational plan sets out the short-term objectives for the business unit (also referred to as company) for the next 12 months. It aims to identify what needs to be accomplished in order for the company to meet its strategic objectives and it does so by identifying and outlining those activities that need to be implemented. 2. Context The following section provides background for the focus, decisions made and activities selected in the operational plan for Employee Benefits. 1.1. Environment An environment analysis focusses on the external and uncontrollable factors that influence an organisation (Peters [sa]). PESTEL is a common macro environment analysis tool which looks at factors from political, economic, sociocultural, technological, environmental and legal aspects and Vitez (2014) explains that such a macro environmental analysis helps create a strategy that leverage as many of these external factors as possible to the company’s advantage. The PESTEL analysis for Employee Benefits has identified the...
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...to maintain a totally or partially nonunion workforce. 2. What is the most frequent method of communicating benefits to employees? How can this method be most effective The employee benefit handbook is the most frequent form of communicating benefits to employees. To be most effective the benefit manual should be accompanied by group meetings and videotape. 3. Which is the most popular empirical method of identifying individual preferences in benefits packages? Explain how this method works The flexible benefit plan is the most popular also known as cafeteria style plan or the super market plan. Employees are allotted a fixed amount of money and permitted to spend that amount in the purchase of benefit options. Employees directly identify the benefits of greatest value to them, and by constraining the dollars employees have to spend, benefits managers are able to control benefits costs. 4. Discuss what psychological contracts mean in employee benefit practices Psychological contracts are an articulation of the exchange relationship between the employer and the employee. A psychological contract has been defined as an employee’s subjective perceptions of the relationship of mutual obligations with the employer and the company. Employee benefits can be a part of the psychological contract employees hold about the employer’s obligations to them in exchange for their work efforts. 5. Briefly discuss how workforce demographic changes can influence the employment...
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...BUS 405 WK 6 Quiz 5 Chapter 7 - All Possible Questions TRUE/FALSE 1. The majority of private sector union contracts do not contain a cost-of-living adjustment (COLA) clause. 2. The majority of private sector employees participate in a profit sharing plan. 3. Most unions consider gain sharing plans as an adequate substitute for traditional negotiated hourly wage gains. 4. The global economy of today has made it easier for employers to pass labor cost increases on to consumers by raising product or service prices. 5. Skill-based pay sets the wage rate according to a job's title (type). 6. Wages and other economic benefits represent income to employees, costs to an employer, and a basis for tax revenue to the government. 7. The majority of private sector union contracts contain a two-tier pay plan. 8. Union leaders favor job evaluation more than managers for use in designing the wage structure. 9. If a union wishes to encourage solidarity within its membership at a particular firm, it should not negotiate for a two-tier pay plan. 10. Labor market wage surveys are not used to ensure that a firm's wage structure is externally equitable. 11. Wage comparability is a fairly easy concept to apply to set wage rates for different jobs. 12. The monetary value of employee benefits provided by unionized employers exceeds the value of employee benefits provided by nonunion employers. 13. A Scanlon plan, Rucker plan, and Improshare plan are all examples...
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...(IRAs) and deferred annuities. 360 Survey: An employee feedback program whereby an employee is rated by surveys distributed to his or her co-workers, customers, and managers. HR departments may use this feedback to help develop an individual's skill or they may integrate it into performance management programs. 401(k) Plan: An employer-sponsored retirement plan that has become an expected benefit and is therefore important in attracting and retaining employees. A 401(k) plan allows employees to defer taxes as they save for retirement by placing before-tax dollars directly into an investment account. Employers also contribute to the plan tax-free, for instance by matching contributions. Some plans enable employees to direct their own investments. These plans can be expensive and complex to manage. It is common for companies to outsource all or part of their plan. No tax is levied until the employee withdraw the amount. A Absenteeism Policy: A policy about attendance requirements, scheduled and unscheduled time off, and measures for dealing with workplace absenteeism. Repeated absenteeism can lead to termination. * Scheduled time off: Excused absences from regular work hours scheduled in advance by an employee for such things as vacation, medical appointments, military service, jury duty, etc. * Unscheduled time off: Absence from work during regular work hours that was not scheduled in advance by the employee (e.g. sickness). Absences are generally accepted...
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...JetBlue, Cases in Advanced Human Resource Management Jet Blue case study Western Governors University Abstract This paper includes discussions of the processes JetBlue initially utilized to staff their start-up airline, and the challenges faced in obtaining the desired employees to achieve the five core values which are: Safety; Caring; Integrity; Fun; and Passion. Company leadership and human resources began by working together to establish the company values in order to identify the traits desired for employees. Descriptive discussion of the recruiting efforts used, laws that needed to be considered; selection processes; appraisal systems; compensation; and benefits, are included within. When staffing the new airline began research needed to be done in advance of any recruitment efforts could starting. Hours of work were invested prior to the first interview in order to prepare to find the ideal candidates. National employment laws and statutes had to be identified in order to comply with the requirements of each. Three examples of such laws are The Equal Pay Act of 1963; The Age Discrimination in Employment act; and the 1990 Act of Americans with Disabilities (ADA). The first National Employment law that we will discuss is the “Equal Pay Act of 1963” (Mondy, 2008, p. 59). This law forbids the employer from paying employees of opposite genders different amounts, if the same job is performed; they have equal skills and...
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...wanting to keep that employee for a long time in that company, then the benefits it is offering such as employee leave and for how many days it is willing to pay for personal leave is very important. Employers offer employees leave in many forms such as vacation, sick time, personal time, paid time as a part of benefit package. These policies really make a difference. They develop a positive working relationship between employee and employer and also increase the commitment of the employee towards the organization which leads to more profits, promotes good working habits and help human resource manager to easily keep track of the employee attendance. This research paper is about paid and unpaid personal leaves for employees. These leaves are not under leave of absence laws. They are not required by the federal law to be granted to the employees and they are purely given by the company as a benefits package or bonus. In the body of the paper, I will discuss about the definition of these days, main goal of these leaves, number of days, rules and regulations on how to use these days, a new policy being introduced in many organizations known as PTO (Paid Time Off Policy) to benefit employees and managers in the place of paid personal leave, benefits and disadvantages. Paid Personal Days Definition: These are the days paid by the employer to the employee as a part of comprehensive benefits package or given at the request of the employee or some legal contract made by the employer...
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...St. Mary’s University School of Graduate Studies MA in Business Administration HUMAN RESOURCE MANAGEMENT MBA - 511 The effect of benefits package on employees’ performance at Ethio Telecom Bole Branch April 2016 Table of contents Page 1. Introduction 3 1.1 Background of the study 3 1.2 Objective of the Study 3 1.3 Background of Ethio Telecom 3 1.4 Methodology 5 2. Literature review 5 2.1 Compensation (Employee benefits) 5 2.2 Direct compensation 6 2.3 Reward and Incentives 6 2.4 Indirect/Fringe benefits 7 2.5 Employee benefits and performance 7 3. Data analysis and presentation 8 3.1 Introduction 8 3.2 Benefits package at Ethio Telecom 8 3.3 Demographic/Biodata analysis 8 3.3.1 Gender of respondents 8 3.3.2 Age of respondents 9 3.3.3 Level of qualification of respondents 9 3.3.4 Experience of respondents 10 3.4 Descriptive analysis 10 3.4.1 Employees opinion towards their benefit 10 3.4.2 The effect of benefits on performance 11 3.4.3 Fair distribution of benefits throughout the structure 11 3.4.4 Benefits package of Ethio Telecom compared with other org. 11 3.4.5 Additional benefit required by employees 11 3.4.6 Which level of organization’s structure performance is highly Affected by benefit 12 3.4.7 Which type of benefit is mostly preferable ...
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...funtions POSDCORB -Employment (Planning, Organising, Staffing, Directing, -Compensation Cooperating, Reporting & Budgeting) -T&D -Human Relationship -Problem Solving COMPENSATION: Compensation is the remuneration received by an employee in return for his/her contribution to the organization. (or) Compensation is the sum total of monetary and non-monetary pay provided to an employee by an employer in return for his work performed. (The reward or the remuneration given to the employee for his employment .) COMPENSATION Monetary Non monetary (By means of case this benefit given to the employees) -The services provide employees Monetary benefit; 1.Salary/wages 2. Incentives 3. Fringe benefits 4.Allowances 5.Conveyance Non-Monetary benefit; Facility...
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...Scratch, by Jody Hoffer Gittell and Charles O’Reilly, 2001. We will identify national equal employment opportunity laws that impact JetBlue's hiring practices. We will take a look at their internal and external recruitment methods, personnel selection process’, and their use of the 360-degree feedback evaluation as a performance appraisal method. Lastly, we will discuss discretionary employee benefits and how JetBlue incorporated at least three discretionary employee benefits in their start-up and ramping up process. National Equal Employment Opportunity Laws The National Equal Employment Opportunity Laws began in this country after the end of the Civil War, with the Civil Rights Act of 1866 that is based on the Thirteenth Amendment to the U.S. Constitution. The act declared that "all persons born in the United States not subject to any foreign power, excluding Indians not taxed," were citizens of the United States. Such citizens were "of every race and color" and "without regard to any previous condition of slavery or involuntary servitude." As citizens they could make and enforce contracts, sue and be sued, give evidence in court, and inherit, purchase, lease, sell, hold, and convey real estate and personal property. Persons who denied these rights to former slaves were guilty of a misdemeanor, and upon conviction faced a fine not exceeding $1,000 and/or imprisonment not exceeding one year. (Civil Rights Act of 1964. (2008, July 24). In Wikipedia, The Free Encyclopedia...
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...Common Employee Benefit Plans . Primary Categories of Benefit Plans • Legally Required Benefits 1. Workers Compensation offers insurance benefits to employees who become ill or are injured at work. This insurance is different in every state and is dictated at the state level. In addition, some states require employers to purchase disability insurance. 2. Unemployment Insurance provides compensation to employees who lose their job for no fault of their own. It is different in every state and is mandated at the state level. The first step is to register the business with the state’s workforce agency and that is where you’ll learn what the state requirement is. 3. Social Security Taxes are required to be paid on employees. The current rate for SS tax is 6.2%, which both the employee and the employer pays, plus an additional 1.45% for Medicare tax. 4. Family and Medical Leave is a benefit that is sometimes confusing for employees. What the Family and Medical Leave Act (FMLA) requires is for the employer to provide 12 weeks of unpaid time off to employees during a 12 month period of time. The leave protects the employee from losing their job to care for themselves or an immediate family member, including the birth of a child or child care. The leave is unpaid unless the employer offers paid leave as part of an optional benefits package. 5. COBRA Benefits are required for employers with 20 or more employees who are subject to the Consolidated Omnibus...
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...Assignment on Salary structure Course title: Compensation management Course code: HRM 412 Section: 1 Prepared For LAILA ZAMAN Senior Lecturer Dep’t of Business Administration EAST WEST UNIVERSITY Prepared by Md Naimur Rahman ID:2012-1-30-005 Q:What is salary? A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary. As explained earlier Money that is received under Employer-Employee relationship is called as Salary . If one is freelancer or are hired by an organization on contract basis, their income would not be treated as salary income.( In such case your income would be treated as income from business and profession). The word salary has come from Latin salrium based on salrius which means pertaining to salt. The word appeared in 1350-1400. In those days, salt , regular ordinary table salt, was a prized and valuable commodity. It was money given to Roman soldiers to buy salt. The phrases the salt of the earth or worth your salt refer to the high value of salt. Q: What are the components of salary? The salary one gets would be sum of the following components 1. Basic salary 2. Allowances 3. Bonuses 4. Gratuity 5. leave encashment 6. perquisites ...
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