Employment can be defined as a contract between two entities – the employer and the employee. The employer is the person who works under a particular organization and provides his service in exchange of a salary or any other form of remuneration. The employer is the person or an organization that provides work to people working under it, known as the employees, and provides them salary for the service they provide.

In normal circumstances, the employer engages its employers in a productive activity that is aimed at generating profit. It is under the right of an employer to direct the contracted employees in the way the work is to be done. The employees contribute to the activity in return of salary or wages. The latter method of salary structure is used when there is a direct feedback related to the employer’s performance. The wages could be fixed or be performance-based. Employment exists in public, private, non-profit and as well as household sectors.