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For many medium to large–sized companies, understanding the role of being a joint employer is very important. A lot of large companies such as Walmart, DHL, have been prosecuted for unpaid overtime pay to the joint employer. Employers who do not fully understand joint employer status are at high risk of violation of the law such as overtime pay.
From the employer's perspective, the application serves a number of purposes. These vary depending on the nature of the job and the preferences of the person responsible for hiring, as "each organization should have an application form that reflects its own environment". [2]
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. [1]
The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. Employment contracts relies on the concept of authority, in which the employee agrees to accept the authority of the employer and in exchange, the employer agrees to pay the employee a stated wage (Simon, 1951).
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