What is the employer's duty regarding employee compensation?

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The employer's primary duty regarding employee compensation is to pay remuneration for work. This fundamental obligation arises from the employment relationship, where the employer agrees to compensate the employee for their labor. Remuneration can take various forms, including salaries, wages, and bonuses, but at its core, it is the basic payment for the work performed by the employee.

While options such as providing bonuses based on discretion and offering stock options are common practices, they are not mandates. Employers are not legally required to provide bonuses or stock options, making these options more variable and dependent on specific employment agreements or company policies. Furthermore, negotiating salary annually may be a good practice and beneficial for both parties, but it is not a legal requirement; some employers and employees may agree to compensation without formal annual negotiations.

Thus, the duty to pay remuneration for work captures the essence of what is legally required from an employer regarding employee compensation.

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