Classification of Employers: Legal Entities vs. Individuals in Labor Relations

📄 Words:	370
📝 Subject:	Employment Law
📑 Pages:	1
✍️ Type:	Essay

Introduction
Classification of Employers
Conclusion
Reference

Introduction

The organization of labor in any field is built in such a way that there must always be a person in charge of the labor process. At present, the labor regulation features of the organization’s head have been embodied in the norms and laws. The employer is a legal or natural person acting as a subject of labor law when entering into labor relations with an employee to use his labor in their legitimate interests. Legal entities and individuals are distinguished depending on the type of working relationship.

Classification of Employers

Employers are usually legal entities or businesses with different legal, ownership, and organizational forms. The relevant constituent documents establish their goals and objectives. However, individuals also enter into labor relations with an employee: individual entrepreneurs or citizens who use someone else’s labor to service the household to assist in creative or scientific activities.

Thus, the definition of ’employer’ comes down to the concept of a legal entity, one of the main institutions of civil law. An organization that has at its disposal separate property, which it fully or partially owns and manages, is a legal entity (Griffin, 2022). Legal entities are organizations that can be in different forms of ownership:

private;
municipal;
state;
belong to public organizations;
mixed-ownership;
foreign states, legal entities, or citizens (Griffin, 2022).

Individuals who have entered into labor relations with employees can act as employers (Griffin, 2022). For example, an employment contract with a personal driver, housekeeper, gardener, and others for personal service and household assistance. It can also be:

persons employing workers for personal services;
private employers who set up small offices;
individual entrepreneurs without organization (Griffin, 2022).

However, employers may not register as individual entrepreneurs. They usually use someone else’s labor for personal purposes but are not individual entrepreneurs.

Conclusion

Thus, an employer is an organization of any form of ownership with a labor juridical person and, first of all, the employer’s legal capacity. Depending on the established relationship between the employer and the employee, there are two main groups of employers: juridical entities and individuals. In all cases, the employer must strictly comply with the requirements of the current labor legislation, under which additional obligations may be assigned to the employer.

Reference

Griffin, R. W. (2022). Fundamentals of Management. Cengage.