Question

In: Economics

Discuss the use by processors of production contracts and of labor contracts. How do they differ...

Discuss the use by processors of production contracts and of labor contracts. How do they differ from each other?

Solutions

Expert Solution

production contracts are those type of contracts whereby agreement between an employer and employee generally labour which may be skilled or semi skilled is enabled on the terms that the labour will be paid the wages on the basis of amount of production or number of units they produce for the employer . for each specific unit or quantity depending upon industry to industry a standard rate is set and agreed upon by the labour and the employer accordingly for which the labourer are paid depending upon the number of units they produce . the payment can be done on daily basis , weekly basis or even monthly basis as decided upon . in this case the employer has the advantage of maximum production as the labourer will be keen in producing more and more so as to get high wages on multiplication with the number of units by agreed rate per unit .

whereas in the case of labour contracts the employer enters into contract with a contractor who is also known as labour contractor who is incharge of all the labourer working in the industry . under this type of contract the employer will pay a definite amount as agreed amongst the employer and contractor and it is the duty of the contractor to get work done from the labourer and pay the labourer adequate amount of their work . in this case the labourer are not paid on the basis of number of articles they produce rather a fixed salay or wages are paid to them as in the case of production contracts the wages of labourer will vary on the basis of number of articles they produce but in these type of contracts the wages remain constant but work load may vary . in this the employer has to take pain to be on head of the contractor to get maximum work done because they are going to be paid the same even if they work less which is the main drawback of this system .


Related Solutions

Discuss sudoriferous and sebaceous glands. What do they do? How do they differ? Discuss sudoriferous and...
Discuss sudoriferous and sebaceous glands. What do they do? How do they differ? Discuss sudoriferous and sebaceous glands. What do they do? How do they differ?
explain how forward contracts differ from futures contracts? As it relates to future contracts, explain your...
explain how forward contracts differ from futures contracts? As it relates to future contracts, explain your understanding of marking to market.
how do HMOs use financial contracts to align the interest of patients and doctors?
how do HMOs use financial contracts to align the interest of patients and doctors?
What are psychological contracts? Discuss the main features and how they develop? How do employee benefits...
What are psychological contracts? Discuss the main features and how they develop? How do employee benefits form a part of employee's psychological contracts?
How do labor relations practices in the public sector differ from those in the private sector?...
How do labor relations practices in the public sector differ from those in the private sector? How does job security factor into public personnel management- is tenure still valid?
Discuss the NPV and the IRR. How do the two values differ? and provide an example...
Discuss the NPV and the IRR. How do the two values differ? and provide an example for both.
discuss the steps of how a skeletal muscle contracts.
discuss the steps of how a skeletal muscle contracts.
How do the relations between labor and business differ when comparing Japan, Sweden, and Germany?  What role...
How do the relations between labor and business differ when comparing Japan, Sweden, and Germany?  What role does government play in each country with respect to influencing those relations?  What role does culture play? Be sure to list the institutions discussed on this topic for each nation and describe how those institutions differ in each nation and why they are different
How do accountants and financial managers differ in their use of financial information? Why is cash...
How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?
How do accountants and financial managers differ in their use of financial information? Why is cash...
How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT