Contract Employment Laws
Any employee working under contract for a company is not considered an "at will" employee. For this reason, federal laws of employment don't always affect the relationship between employer and employee. In the case of contracted employees, the contract between the employer and employees dictates the business relationship. Knowing the contract and its terms can help make the employment relationship a successful one for employer and employee.
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Contracted Workers Vs. Contracted Employee
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A contracted worker is different than an employee working for a company under contract. A contracted worker is typically a business or individual a company contracts to do a specific job until the job is finished. This company operates under its own guidelines. The company doing the contracting does not supply materials or its own employees to do the job, nor does the company dictate policies to the contracted company. A contracted employee, however, is an employee of a company and is subject to company policy, as defined in the contract.
Compensation
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A contracted employee is compensated as outlined in the initial employment contract. What the contract states for pay is what the employee will be paid, regardless of time put in on the job. A contracted employee is not eligible for overtime unless it is clearly stated and outlined in the contract, or unless the employee's contract is renegotiated. The same holds true for vacation time, health benefits and sick pay. Unless these benefits are stated in the contract, an employer does not have to provide them.
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Contract Negotiation
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Contracts between employers and employees are negotiated. The employer comes forth with a job offer that will be placed under contract. The employee reads the offer, and accepts, declines or negotiates for more suitable terms. When an employee looks over an offer, benefits, time off, salary and bonus pay or items that needs to be addressed.
Lay Off Or Firing
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Unlike "at will" employees, where an employer is free to lay off or fire the employee with little or no cause (in most states), an employee under contract with a company is protected by the terms of the contract. The contract drawn up at the time of employment should state those circumstances under which the contract can be dissolved. It is not legal to break a binding contract for any reason that isn't outlined in the terms of the contract, unless the contracted employee has engaged in illegal activity.
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