Creation of employment contrACts Chapter 27- Lesson 1

What will you learn? What is employment defined as? What parties are involved in employment agreements? What is the difference between an express and an implied agreement? How does the law effect employment agreements? What duties do employees have towards their employers?

Take out Notebooks and answer this.. Name any paying job that “you” have had (Or someone you know has) and list 5-10 responsibilities that came with the position in your notebook

What did you write down? Add in anything someone else said in their responses to your notes…

Basis of these responsibilities… Length of employment Duties and responsibilities Wages Benefits Scheduling Hours Retirement packages Vacations Ability to compete with business if you chose to leave Trade secrets Customer service Anything else??

What is employment? Employment is defined as “A legal relationship based on a contract” Parties involved are the employee (party who does work in exchange for an agreement to be supervised and controlled) and the employer (Party who pays for the work)

What does it mean to be supervised and controlled? An agreement to be supervised means you agree to complete work within your job description that is “reasonable” Reasonable means you have the ability to complete the work and training needed (If needed) Controlled means you follow supervisors orders as long as they are reasonable

Can someone work for you and not be considered an employee? YES! Independent Contractors You hire them, tell them what you want completed but you do NOT supervise them Contract is based on completion of what you want done, without supervision

Why contract with independent contractor rather than hire them? Liability issues Liability is a legal term that means responsibility and they can be sued in court If an independent contractor damages your property or someone else's during their work, THEY are responsible for the damages, NOT you…

Where terms of employment contracts come from…. Express agreements between the employer and employee Implied Agreements between the employer and employee Specific state and federal laws

Intro video https://www.youtube.com/watch?v=0WkDV6sX3oE

What are express agreements? Express agreements are detailed written or verbal agreements They describe all elements of the employment relationship (hours, pay, benefits, job responsibilities, etc) They SPECIFY the exact length of time the employment will take place Most are partly written and part spoken

List some benefits and detriments of an express agreement in your notes Stuck in contract for a time limit (If something better comes up, contract must be broken) Pay rates are set for time Negotiate before contract starts, not during or after many times Guaranteed a time for employment Guaranteed “pay” level that is contractually agreed to Guaranteed benefits Protections based on contract Right to court arbitration

What are Implied agreements? Implied agreements are agreements that are “open ended” as to the time a person will have a job (No end time for employment) Also known as “At will” employment A person can quit a job any time they want or be fired at any time with “NO” reason given for their firing

List some benefits and detriments of an Implied agreement in your notes No job security Day to day Hours are not guaranteed Benefits are based on hours Can be fired without being given a reason You’re a “free agent” all the time (Great workers get paid well) Hours and pay are based on day to day results You can leave if something better comes up You can renegotiate your pay all the time

How does the law effect contracts? Sets guidelines for all agreements Each state can be different Examples include minimum wages rules, overtime rules, health insurance and discrimination laws

Employee duties to employer Duty of Obedience Means the employee must obey or follow “Reasonable” orders or rules from their employer Created by both express (Written contracts) or implied agreements

Employee duties to employer Duty of Reasonable skill Means the employee must possess the skill, experience or knowledge to do the work they said they could do Ex) If you tell an employer at an interview you have experience with Microsoft Excel, but you never used it before, you could be fired for lack of skill

Employee duties to employer Duty of Reasonable Performance Means the employee must complete assigned work on time and in the manner expected by the employer Ex) If you are given a week to create a TV advertisement and it takes you 2 weeks, plus you decide to create a website advertisement, you can be discharged for not being on time or following directions

Ticket out the door quiz Complete the practice quiz and turn in before end of class Review and quiz within next 3 classes