Are you thinking of hiring someone? It would be best if you first fix the job's specifics. Job description includes factors like the number of hours the employee will be required to work and the level of commitment you're expecting from them. It's essential to learn about different types of employment as they might assist you in comprehending the terms of your employment.
Did you know?
Around the world, the average working hours consist of 40 to 44 hours. However, France has 35 hours a week, the Philippines has 43.2, the Netherlands has 39, and Japan has 50!
Different Types of Employment
There are a total of eight types of employment. You can choose the form of job that best suits you by understanding the numerous employment types and the benefits that people with these varied contracts have.
The following are the most common types of employment:
Full-Time Employment
Also read: What is the Salary of Medical Coder? - Medical Coding for Freshers
The most typical employment type is full-time work. Employees who are employed full-time have set hours and full leave privileges. Depending on who you ask, full-time employment can mean different things. For many employers, full-time employment often entails a workweek of at least 40 hours. Yet, the following, as relevant to an employer, limit normal working hours to nine hours each day and a max of 48 hours per week:
- The state-specific Shops and Establishment Act, which applies to establishments other than factories,
- and the Factories Act of 1948, which pertains to factories.
The number of working hours is often decided jointly by the employer and the employee. Full-time employees are entitled to paid holidays if a public holiday falls on a typical workday. They are open-ended contracts as agreements with employees are undefined and only terminate when either the employee or the company chooses to.
Employers anticipate regular attendance at work from their full-time staff members as well as advance notification of absences and contract termination. In exchange, companies must provide a warning before terminating a full-time employee unless a full-time employee violates the terms of their contract. Employers may provide redundancy compensation or payout notice periods to dismissed full-time workers.
Part-Time Employment
Part-time employees often work for a company for less than 30 hours per week. They share the same rights and obligations as full-time employees. Additionally, they put in fewer regular hours than full-time workers do. They might work irregular shifts or consistently on fixed days of the week, like part-time nurses and shop employees. Parents, students, and anyone with health issues that make the full-time job difficult should frequently consider part-time work. According to the total hours they serve, part-time employees earn paid leave on a pro-rata basis and are entitled to the same unpaid leave as full-time workers.
Part-time workers are not specifically covered by any laws. Regular employees normally have the same privileges as part-timers; the only distinction is that part-timers receive proportionate benefits. The Industrial Disputes Act of 1947 recognises fixed-term contracts for workers as an exception to the definition of retrenchment (termination in the broad sense), and as such, they are acceptable as long as they are not used to avoid or deny regular employment.
Additionally, employers anticipate part-time workers to show up to work on time, plan their time off, and give notice before quitting. In exchange, businesses must provide information before firing a part-time worker. Part-time workers who have contracts that are terminated may get comparable amounts.
Casual Employment
Casual employees put in irregular hours by the demands of the company. Students who prefer working around their academic and social obligations will frequently find this employment type ideal. Checking their rosters, working their assigned shifts, or exchanging them with another employee are all responsibilities of casual employees.
When the business is crowded, or other employees are ill, their employers may ask them to fill in for shifts outside of their rostered job. Casual workers have the option to accept or reject these shifts. Casual workers may be eligible for long service and parental leave after a year with one employer.
Employees who meet the pay and workload standards additionally receive pro-rata superannuation based on the number of hours they put in. They do, however, take unpaid vacations and sick days. To cover up these, casual workers are also paid a simple loading in addition to their regular hourly wage. They can also take vacations and terminate their work at any time, without giving notice, provided their award or contract of employment says otherwise.
Contract Employment
Due to the fixed-term contract involved, contract employment, also called fixed-term employment, refers to individuals who work for an employer for a predetermined amount of time. These contracts feature dates for both the beginning and finish. Businesses frequently use contractors to carry out certain duties or complete specific projects. Additionally, they might engage them to increase staff numbers during busy times or to fill in for absent workers.
The employer and contractor may decide to cut ties after the contract expires or agree to new terms. If the person has shown they are a valued asset, they may receive an open-ended full-time or part-time contract rather than another fixed-term one.
Contractors can work full-time, part-time, or temporary employees during their agreement. Employees anticipate that their contractors will complete the entirety of their agreement. Contractors are allowed to take time off, but many choose to wait until the conclusion of their contracts to avoid upsetting their employers.
Also read: BSF Constable Salary 2023
Apprenticeship
Apprentices are the newcomers to the trade sectors. While pursuing their vocational certifications, people might get experience in their chosen trades through this form of job. Skilled and certified artisans supervise apprentices. Over time, they frequently assume increasing duties. They are entitled to the same leave and superannuation as average craftsmen. To ensure that their labour contributes toward their certifications, businesses must adequately register their apprenticeship programmes.
Apprentices are paid at the rates specified in registered agreements or awarded by employees. These rates are based on the duration of the apprenticeship. However, payroll taxes are not deducted from employees' apprentice wages. An internship is a fixed-term commitment that lasts for the time of obtaining the apprentice's credentials. After receiving their credentials, the most competent and dependable apprentices generally sign full-time employment contracts with their trained businesses.
Traineeship
Trainees are unfamiliar with non-trade sectors like the media, finance, and advertising. While pursuing a qualification, trainees, like apprentices, gain hands-on experience in the field of their choice. Employers frequently monitor trainees, especially at the beginning of their internships. Typically, traineeships are registered.
Trainees also receive regular employee benefits, including leave and award earnings. Businesses frequently convert their top trainees to permanent employees.
Employment on Commission
People who work on a single task are employed in commission-based jobs, commonly known as piece rate jobs. For instance, a council might commission a mural to be painted on a public wall. Instead of receiving an hourly or weekly income for the time they spent creating it, the artist is paid a predetermined agreed-upon sum for each work of art they produce. A commission is a contract with a set duration only valid for the specified project. However, the person who placed the order may place additional orders if they are pleased with the work performed. Flexible working circumstances are available to commission-based employees. They can choose their hours as long as they do the requested work by the established deadline. Instead of depending on employee contributions, they fund their superannuation. Also, they take unpaid time off.
Probation
People frequently begin their employment with a corporation on probation. Depending on the employer, probation is a brief period ranging from a few weeks to a few months. Employees become acquainted with the company and their new function while on probation. Depending on their chosen job, they might work full-time, part-time, or occasionally. If the employee is qualified, the employer additionally covers superannuation.
If an employer feels the situation isn't working out, they have the right to cancel an employee's probationary contract anytime and without explanation. Although it rarely happens, an employee, in this employment type, may leave the organisation during this time without giving the notice to explore other professional opportunities.
Also read: Guide on How to Calculate PF on Salary? Steps to Calculate the EPF Amount
Conclusion
The key to building a successful team is correctly classifying the employees and contractors you hire, whether you use a mix of the two. The eight primary employment categories are discussed in this article, along with how they differ from one another. Businesses that employ various individuals need to understand the different sorts of employment available in today's labour markets. Employers can quickly boost their productivity by categorising the different types of jobs.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
