What is the meaning of employer?

Explore the nuanced definition of an employer, covering contractual authority and responsibilities toward employees across different sectors. Gain insights into the diverse types of employers and their distinct legal obligations.

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By Brad Nakase, Attorney

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Table of Contents

What Is the Meaning of Employer?

3 Types of Employers

The Responsibilities of Employers

Introduction

The term employer may seem straightforward, but it covers more than you may expect. For example, non-profits may be considered as employers in the eyes of the law. It is important to understand the meaning of employer so you can understand what responsibilities you have to your employees.

Here’s everything you need to know about whether you are an employer and what being an employer means.

What Is the Meaning of Employer?

An employer is the person or entity with the authority in an employment contract. There are a few elements that need to be present in order for an employer to be considered an employer. They are:

A contract that sets the employment terms
Control over when and how the employees work
Compensation in return for the employees’ time and effort
Control over the method of work, including company culture, workplace policies, and communication channels.

This is because, in some states, the law differentiates between employees and independent contractors when determining the legal responsibilities of an employer.

This definition of employer includes individuals who employ staff for their homes and charities or non-profits that employ staff.

3 Types of Employers

Many laws will differ depending on the type of employer you are. State laws may differ between states, so be sure to research employment laws for your state.

The classifications for the 3 types of employers are based on the company’s organizational structure.

Public – A public employer is a government-funded organization. For example, schools, emergency services, and public healthcare are public employers.
Private – A private employer is a company that is owned by its owners or investors. Businesses of all sizes, from Amazon to your local grocery store, are considered private employers.
Non-Profits – Charities and non-profit organizations are also considered employers under employment law.

It is also worth noting that employment laws will also differentiate between the size of the employer. For example, small businesses with fewer than 15 employees will have different responsibilities as an employer compared to SMEs or large organizations. This is because these types of employers will have different buying power.

The Responsibilities of Employers

If you are considered an employer in the eyes of the law, then you have a number of responsibilities to your employees. Here are some of the responsibilities of employers:

Providing equipment – Employers must provide their employees with the tools they need to do their jobs. For example, employers need to provide their employees with equipment like a work phone, laptop, speciality equipment, or even a company car.
Providing salary and benefits – Employers must pay their employees the agreed-upon compensation for their role. This includes any holidays and sick leave that is included in their employment agreement.
Ensuring workplace safety – Employers have an obligation to safeguard the health and safety of their employees. This includes ensuring the workplace is safe and that necessary precautions and policies are in place to ensure their employees are not placing other employees at unnecessary risk. Employers are also obligated to provide adequate facilities for their employees. For example, they should provide access to a bathroom, break room, and first aid kits.
Providing training – Employers have to train their staff to do their jobs to a high standard and in a safe manner. The training may include first aid training, cultural sensitivity training, safe operation of machinery training, or training and certifications for skills related to the job. Employers should provide a pathway for entry-level employees to progress within the company and the training necessary to do so.
Treating employees professionally – All employees deserve to be treated in a professional manner. As an employer, you must respect the personal life of employees and not encroach on their non-work time. Employers also must provide a professional, non-discriminatory work environment. They must provide clear expectations on employee behavior and have policies in place to prevent discrimination. Employers also must document and take appropriate action on unprofessional or discriminatory behavior.
Being honest – Employers must provide honest and accurate information to employees about the things that affect them. For example, employers should give honest performance reviews and be transparent about how they can improve their performance. They should also provide information about taxes or pension schemes so employees can make informed decisions.
Choose leaders carefully – Employers should appoint competent and fair leaders who will act in the best interests of both the company and the employees. An employee’s experience with their manager has a large impact on their overall job satisfaction, so employers should choose their leaders carefully.

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