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Chapter 2

ADMS 1000 Chapter 2: Chapter 2 Employer_Employee Relationship

Administrative Studies
Course Code
ADMS 1000
Shahab Modirmassihai

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Chapter 2: Employee-Employer Relationship
What is an employee?
An “employee” exists when:
oAn employment contract exists
oThere is an exchange of labour for compensation
oThe employer has control over:
The methods of production
How much to produce
The right to direct the employee in how to do his/her job
Different kinds of employment:
Independent contractor – self-employed, still provide
labour for compensation, but running own business
Partners – two ppl working together in a business but
they are part owners of the business (not employees)
Temporary placement organizations – place them to do
work in other businesses. Sub categories are intern and
Employment standards legislation: entitles employees to min wage, overtime pay, mandatory time off and holiday pay, and notice of
term among other benefit
Human rights law prohibits discrimination in employment relationship and access to unemployment insurance.
Tax system treats employees + nonemployees different  nonemployees deduct business expenses from taxable income –
employees cannot do this
Business perspective:
Advantage to having contractors – don’t have to use the ‘tell employees beforehand if they’ll get terminated’ saves a lot more
money , don’t have to give contractors/temp workers compensation or benefits
Benefits to having employees in business – through correct motivational tips, you can max employees’ work + redesigning
workplace reward systems (promise job security + benefit/compensation)
What is an “employee” compared to an Independent Contractor?
4 ‘legal’ factors that determine whether or not an “employee” exists include the:
oDegree of control
Independent contractors can determine the hours they work + manner in which work is performed, they can
hire people to do their work
WHEREAS employees are told when/how they need to work under supervision
oDegree of economic risk
Contractors: ppl may not pay their bills, lose customers, benefit of profits
Employees: obtain wages even if loss of customers (that affects employers), may not get share of profits
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oDegree to which the worker performs an essential service of an organization
Person who performs an integral task for the org will be perceived as an employee than someone who does a
minor task (i.e. chemist vs. someone who mows the lawn)
oDegree to which the organization provides the necessary tools
Contractor: own their own tools
Employers: all tools are provided to them by employers
What is standard employment?
Period between 1930s and 1980s (gov reg)
Regular, full time hours
A single employer
A lifetime career/employer
Periodic pay raises
Health benefits / pension plans
Guided by gov reg
What is nonstandard employment (NSE)?
1980s / 32% of Cdn workforce; young
Vulnerable or precarious work
Less stable
Part time, temp, contract work
Variable working hours
Lower pay
Fewer employer benefit
Less job security
Not entitled to as many social protections
Vulnerable or precarious workers – indv who perform work in a NSE – always @ risk of unemployment: jobs are insecure, low paying =
live in cusp of poverty
Perspective on Work and Government Policy: Workers vs. Employers?
Fundamental issues:
The role and effectiveness of markets
Role of bargaining power in the employment relationship
Role of management and HR
Role of unions and collective bargaining
Neoclassical perspective:
Labour markets are perfectly competitive
Gov and unions should not interfere in business
Competitive markets & supply & demand will allow:
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