We explain what an employer is, what his functions and obligations are. Also, other related terms.
What is an employer?
Labor or employment relationships normally involve two entities: a employee, which is who works, and an employer, which is who the employee works for. In other words, an employer or patron is that person, institution or organization what does it give worked paid to someone
Employers are the initial part of the productive equation, since they are the ones who have a production plan (transforming raw material into services or consumer goods) that requires workforce to be fulfilled, that is, workers.
The employer can be a person physical, that is, an individual who requires the work of another, or a legal person, like a business or corporation, an organization non profit or an institution Condition same.
Thus, between employer and employee there is most of the time a contract, that is, a verbal or written agreement that dictates the conditions under which the work will be given, in accordance with the laws that regulate labor in the corresponding country. This means that both employee and employer must comply with the terms of the agreement or face certain types of sanctions.
Sometimes, the legal figure of the employer can become complicated, for example, when a company is developed in several companies. Then, it is usual to distinguish between the employer of law (the co-contractor) and the de facto employer (who directly receives the work).
Duties of an employer
Employers generally fulfill the following functions:
- They provide employment to their workers, that is, they provide them with a paid occupation and a sense of usefulness as part of a productive project.
- They contribute to the generation of wealth in the society, to the extent that their activities provide employment and do not destroy it (the latter can also be lucrative, although negative for society as a whole).
- They manage the implements and work machinery, and sometimes the physical place where the latter is carried out. In this sense, they circulate important sums of money in society.
Obligations of an employer
Commonly, the State and the law are in charge of regulating labor relations and establishing obligations for the employer such as the following:
- Honor the terms of the work agreement, which must never go against the provisions of the law and the notions of human dignity.
- Provide formal employment, of quality, with fair remuneration and that contributes to the wellness of society as a whole, and not simply with individual enrichment.
- Manage and coordinate in a profitable and efficient manner the instances of the company, such as the relationship with the customers, the maintenance of work tools and the payment of rent for the premises, for example.
- Exercise a position of authority and discipline within the company.
- Allow the formation of organizations trade union or unions that watch over the interests of their workers.
- Promote growth dynamics for the company and for the workers, which have an impact on common improvement.
Other related terms
When we talk about employers, we are often also referring to other similar or related terms, which are not exactly synonyms. Such as:
- Entrepreneur. An entrepreneur is that natural person who owns or is the owner of one or several companies. That is, a private organization that pursues a productive activity for profit. Although all entrepreneurs are employers, since all businesses require workers, not all employers are necessarily entrepreneurs. For example, a domestic worker has an employer, but the latter is not a company but a family.
- Investor. An investor is a person (natural or legal) what buy Actions in a company, that is, that invests money in it. It is synonymous, for practical purposes, with shareholder. Investors have a variable share of responsibility for the destiny of the company, but they are not the employers of those who work in it, since the company has its own legal status.
- Capitalist. In economy, the term “capitalist” refers to who owns the capitals, that is, who puts the money to finance a company. Normally, it is an investor or shareholder, and therefore it is not a synonymous term for “employer”.