1. The Employer 25

2. Employer

3. The Employer and The Entrepreneur
An employer is someone who hires others to do work for them in return for payment.
The entrepreneur is a person who comes up with an idea and sets up a business to develop that idea at a profit. 25

5. Facebook Facebook was founded in February 2004 by Mark Zuckerberg
As of January 2014, the company has about billion monthly users
In 2012, Facebook was valued at $104 billion
They employ 3200 employees

6. Questions
Is Mark Zuckerberg an Entrepreneur? Do you think he is successful? Why.
Is Mark Zuckerberg an Employer? Explain you answer.
How many employees do Facebook have?
What good/service does Facebook provide?
Write an entrepreneur you know and list the main products or services they supply.

7. Rights and Responsibilities
The rights of an employer include:
To set up and run the business as he or she wishes.
To hire the most suitable people to fill vacancies that may arise.
To dismiss (sack) employees due to bad conduct or a poor standard of work.

8. Rights and Responsibilities
The responsibilities of an employer include:
To obey all employment laws.
To treat all employees equally.
To operate a healthy and safe work place.
To give their employees the correct number of paid holidays.
To pay a fair wage for the work that is done.
To give their employees a written contract of employment. 25

9. Development Education
Penney's import their clothes from Bangladesh textile factories.
Penney’s sell high quality products at low prices
In this country minimum wage is the lowest in the world at $36/month.
Factory's in Bangladesh have poor working conditions and employees work over 12 hours a day.
In May more than 1,100 factory workers, mostly women, died in a building collapse.

10. List of companies in Bangladesh
H&M
Hugo Boss
Ralph Lauren

11. The Employer Employing Staff
The Human Resources Manager is responsible for the employees in the firm.
Important Steps:
Find out types of staff needed
Prepare a Job Description which is a plan for each job showing what the person is required to do and what qualifications and experience they should have.
Advertise the job internally and or externally
Examine job applications and CV’s 25

12. The Employer New employees may be given a probationary period.
A probationary period is a trial period.
The new employee may be let go after this period if they are not suitable for the job.
Employers cannot discriminate when they are hiring staff.
Discriminate means to treat one person less favorably than another. 25

13. The Employer New staff should be given an induction.
Induction is where new staff are introduced to other employees and shown around the work place. 25

14. Job Advertising

15. Homework Learn the rights and responsibilities of an employer
Look up least one Job advert and write where you found it? what was the job title? And what important details did the advert include.

16. Employees Records Letter of Application CV Tax Details
Details of performance
Contract of employment
Medical Certificates

17. The Employer Contract of Employment
A contract of employment is a document containing all the details about the job being offered to a new employee. 25

18. The Employer
A contract of employment contains the following information:
Name and address of the employer and the employee.
Date the employment started.
Length of the probationary period if any.
Pay scale. 25

19. Contract of Employment
Amount of paid holidays each year.
The range of duties which the employee must perform.
The number of hours they must work each week.
Pension contributions.
Worksheet 25

20. The Employer Paying the Staff
Basic pay is the amount you receive for a normal working week before any deductions are made
Overtime refers to additional hours worked in a week over and above the normal working week.
Tom’s normal working week is 39 hours. Last week he worked 50 hours which means he worked 11 hours overtime.

21. The Employer
Gross pay is your total pay and is basic pay plus overtime and bonus payments.
Time rate is where the employee is paid an hourly rate, e.g. €12 per hour.
Piece rate is where the employee is paid for each unit produced.
Melanie is a machinist and is paid €5 for every scarf she produces. 25

22. Time Rate
Tom worked for 39 hours a week, for which he is paid $15 per hour. Last week, Tom worked 9 hours overtime, for which he is paid the normal rate(double time). Calculate his gross pay for the week.

23. Piece Rate
Hannah works for Lisa, she makes t-shirts and is paid $5 for every shirt she produces. If she produces more than 8o shirts in a week, she receives extra $1 for every extra shirt. Calculate here gross pay if she produces 85 shirts.

24. Commission
Commission is where an employee is paid a percentage of the sales they make.
David sells lottery tickets for a national charity and is paid 5% of the total sales he makes.

25. Commission
Liam works for Cityair selling flights to a number of EU cities. His basic pay is $250 per week and he earns commission of 2% of sales. Last week he sold seats to the value of $15,600. Calculate his gross pay.

26. Homework
Q.2 (A) 19X12= € 288 (B) € (C ) € 192 ( D) € Q.2 € 666 Q.6 € 168

27. Revision Questions Name three different methods of calculating wages.
What is meant by gross pay?
Define an entrepreneur.
List three items that maybe included in employees records.

28. The Employer
Net pay is the actual amount of money which the employee receives, i.e. their take-home pay.
The deductions that can be taken away from the gross pay can be divided into two groups
Statutory deductions
Non-Statutory deductions 25

29. Statutory deductions Must be taken off by law
PAYE (pay as you earn), PRSI (pay related social insurance)
PAYE is used to help pay for running the country
PRSI is used to pay those who are out of work due to unemployment, sickness, maternity leave or are retired.

30. Non Statutory deductions
The employee has a choice to pay them if they want.
Union Subscriptions
Private pension
Health Insurance

31. The Pay Slip Tax Credits

32. Payslip
Gross pay
Net pay
Employees deductions
PAYE
PRSI
Pension
Union

33. Tax Credits
These tax credits are used to reduce the tax calculated on your gross pay.
Cathy earned gross pay of 500euro last week. Her tax credits amounted to 30 euro per week and she pays tax at 20% Calculate her net pay
500X20%= = 70 tax owed
500-70= 430 euro

34. Homework (i) 18 euro (ii) 36 euro (iv) 3 hours
(iv) Gross pay 1062 – Deductions =

35. Homework
D (i) 12 euro (ii) 16 euro (iii) 5 hours (iv) Gross profit 564 – Deductions =

36. Wages Book
A written record of the wages paid to each employee by the firm each week or month.
It must include Gross Pay, Deductions of both employer and employee and Net Pay.
P 183 Q 20, P 184 Q 21

37. Bingo Employer Job description Overtime Contract of Employment Wage
Salary
Human resource manager
Non-Statutory deduction
Net Pay
Probationary period CV

38. Paying the Staff Employees can be paid in one of three ways: In cash.
By cheque.
By electronic transfer to the employee’s bank account. This process is called pay path. 25

39. Cash Advantages May suit employee who may not have bank A/CC
No charge for the employee
Disadvantages
Risk of theft from the premises
A lot more administration work involved e.g counting the money

40. Cash Analysis Statement
Shows exactly the amount of notes and coins required

41. Cheque Advantages Safe method of payment
Quick method of paying employees
Disadvantages
Bank Charges apply for each cheque written
Employees must go to the bank to deposit checks

42. Transfer to Employees Acc (Paypath)
Advantages
Completely safe
Very fast method
Employees can get access to it immediately through their ATM
Disadvantages
There is a small charge for every electronic payment.

43. P 182 Question 18 and 19

44. Revision
Explain the difference between commission, time rate and piece rate.
What are non-statutory deductions?
Name three methods an employer uses to pay employees.