Employer - Meaning, Importance & Example

Published in Human Resources Terms by MBA Skool Team, Last Updated: May 25, 2020

What is Employer?

Employer is any person responsible for the management, supervision and control of the workplace. An employer is a legal entity that directs an employee under a contract which can be either expressed or implied. The employer is obligated to pay the employee wages as compensation. An employer can be a person, organization, an agency, institution etc.

Employees can be either permanent or temporary. The employer is obligated to provide a minimum wage, minimum working conditions and other benefits as mandated by the law. If no consideration is paid to the employee then the contract between the employer and employee is deemed void and the employee can break the contract without any conditions of the contract applying.

Importance of Employer

It is very important to have an identification of who the employer for the employee as a model employer is responsible for the employee in case any mishappening takes place and would have to pay compensation for it. Therefore, it is the company's responsibility to take care of the well being of the employees and adhere to the proper safety guidelines as mandated by law, therefore being designated as an employer not only gives the company great power but they also has to shoulder the burden of great responsibilities.

It is very important that the employer carries out its responsibilities properly all the way from recruiting the employee to compensating the employee and if need be retrenching the employee because if the employee feels that he/she has been treated unfairly it can result in a law suit leading to loss of time, money and brand value for the organization.

A company which is favored for its good job opportunities and working conditions are known as company of choice or magnet employers.

Roles & Responsibilities of an Employer

Employer Roles & Responsibilities

As an employer, there are several responsibilities & obligations towards an employee. Some keys roles & responsibilities are:

1. Regular Wages & Appraisals

2. Job Security

3. Career Development Opportunities

4. Management, Supervision, Control

5. Training and Development

6. Safe & Hygienic Workplace

7. Health Benefits

8. Work Life Balance

These days companies are effectively showing their offerings to potential employees by employer branding, which showcases what are the benefits of working with their organization to attract the right talent.

Example of Employers

Suppose an organization hires for a job a person A, then that organization would be the employer of A. The organization would be responsible for A in the workplace and has to ensure that A is getting the minimum wages, proper working conditions, adhering to the laws, has adequate safety, is paid proper compensation in case of any mishappening. If there is a lapse in any of the above things then the company would be held responsible for it and they would be penalized for it according to the law. It is important that the employer takes care of the working conditions and the equipment as the mishappening may even end up affecting people outside the organization.

Hence, this concludes the definition of Employer along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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