Chapter 25 - The employer Flashcards
Employer
Person in the firm who hires others, i.e employees, to work for them in return for payment
Entrepreneur
Person who comes up with an idea and sets up a business to develop this idea at a profit
What are the rights of an employer?
○To set up and run the business as they wish
○Hire the most suitable staff
○Sack employees due to bad conduct/poor standard of work
What are the responsibilities of an employer?
○To obey all employment laws
○Treat all employees equally
○Operate a safe and healthy workplace
○Give employees the correct number of paid holidays
○Pay a fair wage for the work done
○Give employees a written contract of employment
HR manager
Responsible for employees in the firm
What are the main steps involved when employing new staff?
- Decide how many new employees you will need and what duties they will have
- Draw up a job description
- Draw up a job advertisement
- Decide where the ad will be placed
- Collect all replies and create a shortlist
- Arrange interviews
- Select the most suitable staff and offer a contract
- Arrange for new staff to be shown around and introduced to other employees
Curriculum vitae
Written account of a person’s personal details, education record, work experience, hobbies and interests
Discrimination
Means to treat one person less favourably than another e.g. because one is a man and one is a woman
Probationary period
Trial period. The new employee may be let go after this period if not suitable for the job
Equal opportunities employer
Follows the principle of equal opportunity in regards to its hiring and promotion procedures. Not allowed to discriminate based on items such as race or gender, and is required to give everyone equal chance
Contract of employment
Document containing all details about the job being offered to the employee
Wage
If a payment is based on the number of hours worked by the employee or the quantity of goods produced, it is called a wage
Salary
If the employee receives a fixed amount each time they’re payed it’s called a salary
Basic pay
The amount an employee receives for a normal working week before any deductions
Overtime
When an employee works more hours than they are normally required to do. This is usually voluntary and they are paid at a higher rate than normal working time
Flexitime
Where the employee is free to choose when they work during the week
Gross pay
Total pay (i.e. basic pay + overtime + bonus payments) before any deductions have been taken away
Time rate
Employee is paid by the hour
Piece rate
Employee is paid for each unit of the firms product they produce
Commission
Employee is paid a percentage of the sales they made during the week or month
Net pay
Gross pay after deductions have been taken away
Statutory deductions
Deductions the law says must be taken away from the pay of every employee
What are the two statutory deductions?
PAYE (Pay As You Earn)
PRSI (Pay Related Social Insurance)/USC (Universal Social Charge)
Non-Statutory deductions
Employee has the choice whether they want to pay it or not
Give examples of non-statutory deductions
Union fees
Private pension payments (superannuation)
Health Insurance
What is a payslip?
A document that shows an employees gross pay, deductions and net pay
What is a wages book?
A written record of the wages paid to each employee by the firm each week/month
What are the three ways a firm can pay its employees?
○Cash
○Cheque
○Paypath
What are the advantages of paying your employees in cash?
○May suit employees without a bank account
○No cost for employer
What are the disadvantages of paying your employees in cash
○Risk of theft
○Lot more admin work involved
What are the advantages of paying your employees by cheque?
- Safe
* Quick method of paying
What are the disadvantages of paying your employees by cheque?
- Bank charges firm for each cheque
* Employees must lodge cheque before they can spend it
What are the advantages of pay path?
- Completely safe
- Very quick
- Employees can get access to money immediately at an ATM
What are the disadvantages of pay path?
•Small charge for electronic payments as well as an annual maintenance fee for having your bank accounts online
