Meaning of Employment

Employment is the economic activity, rendered by one person to another, under a contract of service, for some remuneration.

Features of Employment

(a) Work for another

It is an occupation where a person called employee works for another person called employer.

(b) Terms and conditions

There are certain terms and conditions of work like hours of work, duration of work, leave facility, salary/wages, place of work etc.

(c) Periodical remuneration

The employees get salary normally on a monthly basis or wage normally on daily/weekly basis for their services.

(d) Contract of employment

Legally the employer-employee relationship is based on a contract and any deviation from any side permits the other party to take legal recourse.

(e) Skilled/Unskilled/semi-skilled

There are jobs for which no technical education is required for employment. But, for skilled jobs, a certain level of basic/technical education is required.

(f) Economic motive

The main purpose behind employment is to secure assured income through wages and salaries.

Meaning and Nature of Business Risk

Nature of Business Quiz