Introduction:
The dictionary meaning of the term employee is that he is a person who works for another in return for financial or other compensation. The legal definition of employee differs from legislation to legislation based on the purpose of such legislation. An employee as defined in the national labor relations act “an employee shall include any employee, and shall not be limited to the employee of the particular employer”. An employee is an individual who was hired by an employer to do a specific job and he is being hired by the employer after an application and interview process results in his or her selection as an employee. Such employee works within a functional area or department such as marketing or human resources and he will have a boss to whom he directly reports and follow directions given by that person, that person usually called as a manager or supervisor. The employee has work station or office in which he accomplishes the job. The employer supplies the employee with the tools and equipment necessary to perform work such as a computer, telephone, etc. The employee works for compensation and the work may be temporary, part time or full time, and he will receive the award of compensation in return to the knowledge, skill he uses during the course of his employment.
An employer is an organization, institution, government entity, agency, company, professional services firm, nonprofit association, small business, store, or individual who employs an employee to do the work and the employee shall receive compensation in return for that work. An employer hires an employee as per the conditions mentioned in the offer letter, which specifies about the employee benefits, his salary package, holidays and the pay is subject to the “fair labor standards act”. This employer has certain responsibilities that are found to be mandatory as per law, which includes paying employees, withholding taxes and filing reports with internal revenue services (irs).
Need for employer employee relationhip:
Before the rapid growth of industrialization, the relationship between employer and employee was not of high importance. But in modern times, with the emergence of taxation, tort liability, the relationship between the so called employer and employee gained its significance. The relationship between the employer and employee exists in an employment. An employment is an agreement between an employer and employee that the employee will provide certain services to the employer in the place specified by the employer upon his direction by helping the employer to accomplish his goals. Certain tests have been used to determine whether an employment relationship exists or not. They are:
1. Common law test: as per this test an employment relationship exists if the employer has the right to control the work process and circumstances surrounding such work process.
2. Economic realities test: employment relationship exists if the individual is economically dependent on continued period of employment.
3. Hybrid test: the hybrid test combines elements of the common law test and the economic realities test, in keeping with the accepted view of all courts that the totality of the circumstances surrounding the relationship between worker and employer should be examined to determine whether the worker is an employee or an independent contractor.
The relationship prevails between an employer and employee is that of a master and servant mater will be held accountable to the acts of the servant, he will be held liable if the act is committed in the course of the employment, that is only when the servant is under the control of the master. Even though the role of employer is that of a master, that does not mean that he will have absolute power over the employees and do whatever he wants and there is protection for employees against unfair treatment and also they can file complaint against such unfair treatment. If the relationship between the employer and employee is not good then it will lead to series of problems which later on affect the industry. Employees through their trade unions go against the employer by ways of poor working, deliberate time wasting, refusing to work overtime, going on strike, etc. So, workplace violence is considered to be risk to the business.
How to maintain employer- employee relationship:
An employment relationship is held to be exist if the employee works in an organization for a longer period, if an employee has to be remained with one employee then he should be provided with payment of wages on time, lawful deduction of taxes, better working conditions, various benefits etc. Employer also should be satisfied with the performance of the employee so that there may be gradual increase in the salary which helps in maintaining a better employment relationship.
Payment of wages:
It is well known fact that an employee shall render his service to the employer and in return employer will pay him the wages/salary. An employer has to pay wages to his employee at least once in a month if such employee if such employee is exempted from overtime pay otherwise employee should get paid twice a month. It is the duty of an employer to display in the conspicuous place of workplace the days of pay, if it is not displayed then 1st and 15th day of the month will be the pay day. If an employee terminated from his work then his remaining pay has to be paid within sixth day of such termination .
Employees who are injured or become ill on the job are covered by state workers compensation laws. In every state, employers are required to have workers compensation insurance though there are a few exemptions. Benefits include payment for lost wages and payment of medical bills. Though salary will not be paid in full at least 2/3rd of the salary will be paid. In case of any such injury then the employee should notify the same to the employee and he should provide required forms to be filled to get required formalities to be done and moreover employee will not be in a position to contact workers compensation office immediately.
Deduction from wages:
An income tax is a tax levied on the income of individuals or businesses and income taxes are “graduated” which means the percentage of the tax to be paid increases with the increase in the income earned by the employee. Federal law, state and local government law requires employers to withhold the tax from wages of employees, these taxes includes federal income tax, social security tax, medicare tax and state income tax. Social security taxes will be governed by the federal insurance contributions act and these taxes are collected to fund social security initiatives including retirement programs. Medicare is also considered to be mandatory payroll tax deduction to serve federal medical and hospital insurance services. Withholding of tax will be determined by the employer and the rate will differ from one state to another. If there is excess of withholding then such tax has to be refunded.
The internal revenue service handles the collection and enforcement of payroll taxes. These taxes fund national programs, such as law enforcement, community development programs and foreign affairs and moreover provide medical and retirement benefits to qualified individuals and also fund state programs, such as public schools and unemployment benefits. Wage garnishments and child support orders ensure employees maintain their debt and parental obligations. Voluntary deductions are optional and it is left to the discretion of the employer to provide them. On certain circumstances even the employer also must to contribute to this employment taxes.
Employee at workplace:
The legislations passed by the government have played a vital role in building an employer employee relationship by providing health, safety, respect and fairness for employees. Some of those legislations are occupational safety and health act, 1970, equal pay act, 1963, age discrimination in employment act 1967, civil rights act, 1964, americans with disabilities act 1990, fair labor standards act 1938, employee retirement income security act 1974 etc. Employers should abide by the regulations laid down by these legislations which provide protection for employees.. These legislations shall provide employees with safe and healthy work conditions, means a place which is free from recognized serious hazards and to provide physical safety to the workers. Recently smoking in the work place is also strictly prohibited to reduce health risks. Employers who fail to meet the regulations mentioned above will be held liable for civil as well as criminal penalties. The fair labor standards act (flsa) prescribes standards for wages and overtime pay, which affect most private and public employment. The act is administered by the wage and hour division. It requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay. For nonagricultural operations, it restricts the hours that children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous. For agricultural operations, it prohibits the employment of children under age 16 during school hours and in certain jobs deemed too dangerous.
Cobra (consolidated omnibus budget reconciliation act) gives employees and their families who lose their health benefits the option to continue group health benefits provided by their group health plan for limited periods of time which is usually up to 18 months under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.
Conclusion:
The relationship between the employer and employee sustains if the employer provides employee with required benefits and in return employee should render service to the employee. If any one of them fails in performing their duty then it is very much difficult to maintain the employment relationship which later on affects the production of the industry. In the same employer has the right to make various tax deductions from the wages of the employee which includes medicare tax, social security tax, federal tax etc. Various statutes also have played an vital role in building and maintaining the employment relationship.