Employment Law Legal Terms 1)Employment – contractual relationship in which one party engages another to work for pay under the supervision of the party paying 2)Employer – party who engages another to work for pay 3)Employee – party who works under the supervision of another for pay 4)Independent contractor – one who contracts to do something for another but is free of the latter’s direction and control 5)Employment at will – employment relationship whereby employee may be discharged at any time because no agreement was made about length of employment; employee may quit the job at any time without liability for breach of contract 6)Wrongful discharge – firing an employee in retaliation for reporting violations of law by the company

7)Discharged without a cause – employee’s discharge is not due to his or her conduct 8)Unemployment compensation – government payments to those who recently lost their jobs through no fault of their own 9)Discharged for a cause – employee is discharged due to the violation of an employment obligation 10)Payroll deductions – money deducted from an employee’s paycheck 11)Worker’s compensation – payment employer makes to an insurance fund that compensates employees for injuries that occur on the job 12)Duty of obedience – requires employee to follow the reasonable orders and rules of the employer

13)Duty of reasonable care and skill – requires agent to exercise the degree of care and skill any reasonably prudent person would use in a similar situation 14)Duty of loyalty and honesty – requires employee to look out for the best interests of the employer 15)Duty of reasonable performance – requires employee to perform assigned duties at the prescribed time and in the prescribed manner