ADMS 1000 Chapter Notes - Chapter 2: Independent Contractor, Invisible Hand

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Employment is a form of work in which a person (an employee") is dependent upon, and mostly subservient to, an employer". The employment relationship is governed by an employment contract, which may set out specific rules, obligations, and rights applicable to the employer and employee, and is usually enforceable in a court of law, like other contracts. Employees sell their labour in exchange for compensation usually in the form of wages and perhaps benefits of some sort. Many people work but are not employees. Independent contractors: run their own business rather than serving as an employee for another business/person. Cons: lack of employment security and regular wage; contractor assumes success of project, and risk of financial loss if it fails. Pros: temporary arrangement so much flexibility; contracting out" of services as strategy to reduce business"s overheads/fixed costs; saves office space/full-time wage/termination costs etc. ; don"t need to pay minimum wage; don"t need to pay benefits .