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What Is the Definition of an Employer?

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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Your role as an employer can be expansive, and you might work whilst you are an employer. It’s good to remain available in your company and ensure a conducive work environment for your employees. This can help enhance your company’s productivity by understanding your employee’s needs are. Find out the definition of an employer, the different types of employer and their obligations at the workplace.

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Who is an employer?

An employer is an authoritative figure that employs and pays individuals for their labour. They could be an individual with several employees or a company with a large workforce. Within the relationship between a particular employer and their employees, the employer is the entity that sets employment terms and prepares a relevant contract. This includes dictating where, when and how they need the employees to work. In return, they compensate the employees for their time and efforts as defined by their contract’s terms.

An employer sets the pace for how they want their company to operate, including establishing an appropriate culture. They stipulate the means of communication amongst employees, establish workplace policies and come up with relevant reporting structures and management systems.

Types of employers

There are different types of employer, but only two ways of classifying the type of employer you are. These include using the structure of your company and its size. Depending on your organisation’s structure, you could fall under any of the following categories of employers:

Related: 10 Recruiting Strategies for Great Employees

Public

This includes services funded by the state and some of the UK’s biggest employers. Examples are the National Healthcare Service (NHS), the police and the civil service.

Private

This includes companies owned by individual citizens or collective groups ranging from huge corporations to small restaurants and shops.

Third sector or not-for-profit

This includes organisations established for humanitarian purposes and are sometimes exempted from paying tax.

Types of companies

Depending on your company’s size, it could fall under any of the following categories:

Large organisations

Large organisations typically have over 250 employees and a formal structure that involves training and induction programmes. Employees in these companies enjoy higher starting salaries and perks like company cars.

Small and medium enterprises (SMEs)

SMEs typically have 10 to 250 employees and may lack formal training and induction programmes. The employees in these companies have lower salaries as compared to those in large organisations.

Microbusinesses

This includes companies with less than 10 employees. It’s common for employers in these companies to work alongside their employees in the office, restaurant, shop or another business environment.

Obligations of employers at the workplace

You must fulfil your obligations as an employer, regardless of the type of employer you are or the business culture you adopt. The following are the primary obligations of employers you need to uphold:

Related: How to Find Good Employees

Providing work tools

You should provide your employees with the tools they necessary tools for them to accomplish their tasks. This can include computers and the software, sufficient workspace and specialised equipment, among others.

Paying salaries and benefits

It’s your duty to pay your employees the payments you’ve agreed, especially if they report working and accomplish their responsibilities every day. You should also allow them to go for any necessary sick and paid holidays to allow them to report back with more vigour to accomplish their tasks.

Ensuring workplace safety

You should provide and maintain a safe working environment that poses no threat to the health of your employees. This includes ensuring that the equipment and chemicals that employees handle are safe, offering adequate facilities like washrooms and first aid kits, and ensuring proper training and supervision of workers to ensure that they never endanger their health or safety as they work. It also includes preventing external sources of risk and protecting your employees from discrimination and harassment.

Remaining professional

Treating employees with respect and professionalism allows you to offer a great example of how they should conduct themselves. This includes respecting their non-work hours, speaking courteously and creating a workplace environment that fosters equality.

Mentoring employees

You should train your entry-level employees and mentor them to help advance their professional goals. You can ensure that other employees understand how to assist recruits or invest in training resources.

Related: Report: Addressing Hiring Challenges for Small Businesses

Reporting and documenting incidents

This includes instances such as when there has been a case of discrimination or harassment. You need to resolve the incident quickly and inform the relevant authorities of the matter.

Being honest

You should remain honest as you discuss a number of issues that are relevant to your employees. For example, give them details of how tax deductions work on their pay stubs. You should also discuss their performance openly to help them discover the areas they need to improve on and increase their chances of professional success.

Choosing leaders

You have to select appropriate supervisors and department managers who can capably oversee other employees. Such leaders should be competent, knowledgeable, ethical and fair.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.