Chapter 25 - The employer

Question 1

Employer

Answer 1

Person in the firm who hires others, i.e employees, to work for them in return for payment

Question 2

Entrepreneur

Answer 2

Person who comes up with an idea and sets up a business to develop this idea at a profit

Question 3

What are the rights of an employer?

Answer 3

○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

Question 4

What are the responsibilities of an employer?

Answer 4

○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

Question 5

HR manager

Answer 5

Responsible for employees in the firm

Question 6

What are the main steps involved when employing new staff?

Answer 6

1. Decide how many new employees you will need and what duties they will have
2. Draw up a job description
3. Draw up a job advertisement
4. Decide where the ad will be placed
5. Collect all replies and create a shortlist
6. Arrange interviews
7. Select the most suitable staff and offer a contract
8. Arrange for new staff to be shown around and introduced to other employees

Question 7

Curriculum vitae

Answer 7

Written account of a person’s personal details, education record, work experience, hobbies and interests

Question 8

Discrimination

Answer 8

Means to treat one person less favourably than another e.g. because one is a man and one is a woman

Question 9

Probationary period

Answer 9

Trial period. The new employee may be let go after this period if not suitable for the job

Question 10

Equal opportunities employer

Answer 10

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

Question 11

Contract of employment

Answer 11

Document containing all details about the job being offered to the employee

Question 12

Wage

Answer 12

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

Question 13

Salary

Answer 13

If the employee receives a fixed amount each time they’re payed it’s called a salary

Question 14

Basic pay

Answer 14

The amount an employee receives for a normal working week before any deductions

Question 15

Overtime

Answer 15

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

Question 16

Flexitime

Answer 16

Where the employee is free to choose when they work during the week

Question 17

Gross pay

Answer 17

Total pay (i.e. basic pay + overtime + bonus payments) before any deductions have been taken away

Question 18

Time rate

Answer 18

Employee is paid by the hour

Question 19

Piece rate

Answer 19

Employee is paid for each unit of the firms product they produce

Question 20

Commission

Answer 20

Employee is paid a percentage of the sales they made during the week or month

Question 21

Net pay

Answer 21

Gross pay after deductions have been taken away

Question 22

Statutory deductions

Answer 22

Deductions the law says must be taken away from the pay of every employee

Question 23

What are the two statutory deductions?

Answer 23

PAYE (Pay As You Earn)

PRSI (Pay Related Social Insurance)/USC (Universal Social Charge)

Question 24

Non-Statutory deductions

Answer 24

Employee has the choice whether they want to pay it or not

Question 25

Give examples of non-statutory deductions

Answer 25

Union fees
Private pension payments (superannuation)
Health Insurance

Question 26

What is a payslip?

Answer 26

A document that shows an employees gross pay, deductions and net pay

Question 27

What is a wages book?

Answer 27

A written record of the wages paid to each employee by the firm each week/month

Question 28

What are the three ways a firm can pay its employees?

Answer 28

○Cash
○Cheque
○Paypath

Question 29

What are the advantages of paying your employees in cash?

Answer 29

○May suit employees without a bank account

○No cost for employer

Question 30

What are the disadvantages of paying your employees in cash

Answer 30

○Risk of theft

○Lot more admin work involved

Question 31

What are the advantages of paying your employees by cheque?

Answer 31

• Safe

* Quick method of paying

Question 32

What are the disadvantages of paying your employees by cheque?

Answer 32

• Bank charges firm for each cheque

* Employees must lodge cheque before they can spend it

Question 33

What are the advantages of pay path?

Answer 33

• Completely safe
• Very quick
• Employees can get access to money immediately at an ATM

Question 34

What are the disadvantages of pay path?

Answer 34

•Small charge for electronic payments as well as an annual maintenance fee for having your bank accounts online