Understanding Employment: What Are the Key Elements and How Do They Work Together?

Hi,

As far as I know, the essential ingredients for determining the concept of employment are as follows:

1. Employer - One who employs or engages the services of another person,
2. Employee - One who works for another for hire; and
3. Contract of employment - the service contract between the employer and the employee, whereby the employee agrees to serve the employer, subject to the employer's control and supervision.

I would like to seek suggestions or any brief ideas about this, as I may be mistaken.

Regards,
S S S

1) You have a Principal Employer who employs people on a Permanent or Contract basis. The nature of the assignment determines whether you employ people on a contract.

2) An employee can be a permanent employee who works directly with the employer or a Contract Employee who works for a specific duration.

3) As a Principal employer, you can hire a contractor to handle certain types of jobs that are not core areas of your business or are of short durations.

Dear Sinha,

Contract of employment - the contract of service between the employer and the employee wherein the employee agrees to serve the employer, subject to his control and supervision.

There are two types of contracts:

1. Contract of Employment
2. Contract for Employment

Typical employment with terms like salary and benefits fall under the category of Contract of Employment. Here, the assurance is the monetary benefits for being employed with you, and the employer is responsible for supervision.

Alternatively, in Contract for Employment, the assurance is not on monetary benefits, and the assurance is the number of workdays and the potential income. The employer does not supervise here, and it is for the employee to earn.

You come across lots of online job offers. They fall under the category of Contract for Employment. Since there is no close supervision involved, it may appear that there is no employer-employee relationship.

Am I confusing you, or is it clear?

Siva