Employment Contract &
#employmentcontract #hr #grosssalary #salary #financialrewards
What is an #employment #contract ? What is the difference between gross and net salary? Which are the advantages and disadvantages of a FIXED salary?
Employment Contracts and Gross Salary Explained- Financial Reward System
Lesson Summary:
The salary can be seen as the most popular form of payment for a worker and involves receiving an equal portion of his or her annual compensation every month or two weeks depending on each country's legislation or each company's internal policies.
The salary which a person receives is the result of an existing employment contract: an agreement entered into between an employer and an employee at the time the employee is hired that outlines the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed.
When it comes to payroll and paychecks, there are two important terms to understand: net pay and gross pay. Gross pay is the amount of money your employees receive before any taxes and deductions are taken out. Net pay is the amount of money your employees take home after all deductions have been taken out. This is the money they actually get on payday.
In comparison with the other payment systems discussed until now this payment method provides the worker with the security of income and helps him or her sleep better knowing that regardless of how the monthly costs of the company will vary, he or she still has a fixed income guaranteed through a labor contract.
The challenge with such a payment system is that the income cannot always be related to the level of effort or productivity of a worker and it may lead to complacency. If your workers start sharing this feeling it could
prevent your organization from pushing towards the status quo in order to achieve exceptional results.
Chapters:
0:00 Intro
1:03 Contract of employment and salaries
2:28 Terminating an employment contract
4:00 Annual compensation (gross vs net salary)
5:47 Taxes and contributions paid from our gross salary
7:33 Advantages of such a financial reward system
11:16 Disadvantages of such a financial reward system