Professional Documents
Culture Documents
Rights and Duties of Employers and Employees
Rights and Duties of Employers and Employees
Employees
Each day, employees and employers work together to complete tasks and projects for businesses.
Both employees and employers have rights and responsibilities that are standard based on business law.
Employees who understand their rights and duties may reduce their risk of being mistreated by their
bosses. Conversely, employers who are familiar with their obligations and allowances may manage more
effectively.
Power
Uslegal.com explains that, with the exception of contractors, employers and employees in the United
States usually operate under "master-servant" relationships. This term means that a master (the
modern employer) has some amount of power over their servant (the employee). Employees under
master-servant relationships are obligated to recognize the authority that the employer has. This
doesn't mean that an employer can do anything he wants just because he is a "master." In fact, business
law protects employees from unfair treatment. If an employee feels an employer is abusing his power,
the employee usually (but not always) has the right to file complaints and express his opinions through
options such as picketing and striking.
Loyalty
Businesses suffer any time a competitor steals away concepts or human resources. For this reason,
employees are supposed to demonstrate loyalty to an employer. They aren't supposed to divulge
company secrets or divide time between two conflicting jobs. This doesn't mean that an employee can't
look for other job prospects. It means that an employee should be upfront with their employer and
respect the privacy and business goals their current company has.
Fairness
Employers should treat their employees fairly. Federal laws such as the Civil Rights Acts of 1964 and
1991, the Americans With Disabilities Act and the Age Discrimination in Employment Act of 1990 make it
illegal to discriminate during hiring, training and complaint hearings based on factors such as race, age,
gender, nationality or religion. States are able to pass and enforce their own work fairness laws that
expand on the federal statutes, according to employeeissues.com, however, so there is some degree of
variance on workplace fairness from state to state. Employers who violate fairness laws may be sued
and fined.
Duties and responsibilities go hand in hand. However, there is a fine line of distinction between
the two. Duty is a task performed by a person out of his job profile, and responsibilities are
obligations for which he is accountable. All duties may not be responsibilities, but all
responsibilities are duties. For example, it is a manager's duty to manage the task, but it is not his
responsibility to pay for someones mistake. Project management is associated with imparting the
duties and responsibilities for a manager. Duties of project manager and responsibilities of
project manger have been studied by many management experts and are made to suit the
business in the most effective ways. Those aspiring to be project managers have to learn to be on
an eternal vigil, develop a vision, take proactive decisions and understand the diversity in
training. Project management is a discipline of planning, organizing and managing a specific task
and bring about its completion with excellency.
A project manager has to deliver the performance with better success rates.
He should be able to lead his team and bring out the best in them.
It is his responsibility to perform and give with truth and honesty.
By the virtue of being a manager, he has to maintain confidentiality.
He is responsible for establishing easy communication between the employees and the
higher authority.
In case of emergency, he should be able to solve problems for his team members.
He is responsible for good team building, which is defined by success.
Companies can take the help of several project management software to establish an effective
management. A project manager roles in a project vary with the nature of the project. He needs
to mend his ways and methods to suit the requirement. The main responsibilities of a project
manager are motivation and to provide encouragement his team members. He is the main source
of motivation for them, which is the base of any successful project. Leadership responsibilities of
a project manager give the employees a direction, accelerating the pace of the work.
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Shareholders Duties
Shareholders should make sure the company heads in a direction they support.
In a business, shareholders wield power, along with the board of directors, executive officers
and the chief executive officer (CEO). Sometimes, shareholders even have duties to perform.
The specific duties of a shareholder depend on whether he is a minority or majority investor.
Shareholders with fiduciary duties only obtain them in certain situations, but the changing
economic world is giving all investors more implied duties.
General
1. In general, the corporate world believes shareholders have no fiduciary duties to a company
because they merely invest in a company passively. In addition, the board of directors and CEO
hold the same motivation for profit as shareholders and receive compensation to improve a
business. However, it is important that investors follow the performance of the business and its
share value. One of the most important duties is to express confidence or disappointment in
company leadership (called activism) and issues such as mergers, by voting at shareholder
meetings.
Majority or Controlling Shareholder Duties
2. A shareholder or shareholder group holding the majority of stock in a company usually has total
control over leadership and decisions. Controlling shareholders have a legal responsibility (called
a duty of loyalty) to make sure that their decisions are fair to minority investors, according to
the American Bar Association. Typically, keeping fairness means the majority owners refrain
from actions that could devalue a shareholder's earnings. Most disputes over fairness involve
the majority holders voting to let the company buy back shares only from the majority holders
and/or attempting to reduce the role of minority investors with a merger (known as a freeze-
out).
The doctrine of fairness that the courts follow gives minority investors the duty of challenging
any objectionable actions by the majority in a court of law. In such a challenge, the majority
shareholders have the duty to prove the legitimacy of their actions. However, the minority
investors have the duty (or burden) of proving unfair actions if the major shareholders prove to
the court that minority investors approved an action after receiving all pertinent information.
3. The rise of large pools of investors that control significant shares of a company is starting to
muddle the idea of duties of loyalty normally ascribed to majority shareholders. In 1992, the
Securities and Exchange Commission reduced the restrictions on activism by proxy investors,
such as hedge and mutual funds, according to the Legal Workshop. This allows proxy investors,
even those with a minority holding, to make public pitches for the direction they believe a
company should go. In addition, pools of investors can more easily communicate with each
other and coordinate their voting to wield even more power. Whether the courts will apply the
fairness doctrine to powerful minority investors remains to be seen, but UCLA law professor
Iman Anabtawi believes the courts should hold all investors to the same standard.
Owning stock in a publicly traded company is one of the most common, and potentially
lucrative, financial opportunities. By investing in a company, shareholders become partial
owners and can profit from future successes. Stock ownership also entitles shareholders to
certain rights that members of the general public lack until they too become investors.
Right to Sale
1. One of the primary rights of shareholders is the right to trade stock at any time. A shareholder
may sell on the open market, through a broker, for the current value of the stock, which may be
more or less than she originally paid for it. Shareholders have the right to sell stock at any time
regardless of the performance of the company.
Voting
2. Shareholders in a public corporation may vote at the company's general meeting, which is
where certain policy and personnel decisions are made. Shareholders often have a say in who
sits on a company's board of directors and may be able to weigh in on the hiring, firing and
compensation of executives. Shareholders who don't attend the company's general meeting
have the right to vote by proxy by submitting a form that authorizes a shareholder
representative to cast votes at the general meeting in the name of shareholders.
Information
3. Anyone who owns stock in a company has the right to accurate and timely information about
the company's operations, expenses and earnings. Most companies supply this information
through press releases, earnings statements and an annual report, which features in-depth data
along with information about future projects and business plans.
Choosing to Invest
4. Deciding to invest and choosing how much to invest in a company is the first responsibility every
shareholder faces. This requires the shareholder to consider the company against its
competitors. Good investors consult many resources, including financial planners, finance
publications and the Internet, to determine the degree of risk involved in a stock purchase.
Tracking Progress
5. Shareholders are responsible for tracking the progress of the companies they own. Besides the
information companies supply about themselves, independent analysts offer opinions about
whether a company is more likely to see its stock rise or fall in value in the future. Knowing
when to sell, or when to invest further, is based on responsible research and awareness by
shareholders