Fair and Equitable Compensation Essay Example | Topics and Well Written Essays - 1000 words

Fair and Equitable Compensation - Essay Example â€Å"Fair and Equitable Treatment† is a standard originated from the 1948 Havana Charter for an International Trade Organization. It provided that foreign investments should be given just and equitable treatment through the promotion of bilateral or multilateral agreements on certain measures and in the treatment for an enterprise, skill, capital, arts and technology coming from a member country to another (Yannaca-Small, C., n.d). Today, the definition of the treatment is not as far from its instigation when applied to the standard in the workplace. Simply put, it is a standard that makes sure every establishment should facilitate an equal distribution of skills, arts, technology with regard to the need of an employee to be able to do a job well. Also, it determines the right of each company to determine just terms of admission and ownership of investment or compensation for every employee. A personal consideration of fair and equitable compensation could be seen in two pers pectives- the employer’s and the employee’s. A part of its provisions for employees would be to grant them at least a minimum wage which is set by a state’s government. This depends on the type and level of job one is hired to do. Also, it entitles an employee to have a chance to advance in their chosen position through job evaluation done by one’s direct boss, to know whether they are performing under or over the expectations of a certain job description. The Fair Labor Standards Act (FLSA) also sets the criteria for an employee’s benefit of getting an overtime pay. The only exemption to this would be a modified employee’s salary level based on the nature of work done that should be stated in the contract signed by the employee (Compensation and Benefits Policy, n.d.). This holds that full-time employees should receive extra payment for work done outside office hours while non-regular employees do not receive an overtime pay. Salary apprais al is another thing that is included in the fair and equitable compensation for employees. This should be done through annual performance review to regulate whether a certain employee should be considered an asset that lawfully deserves to be rewarded. Benefits, aside from salary appraisal should be granted for regular employees such as life insurance, accident insurance, flexible spending accounts, dependent care assistance, sick leaves, vacation leaves, bereavement leaves and etc, depending on the company (Compensation and Benefits Policy, n.d.). On the other hand, as fair and equitable compensation protects the rights of employees, it also provides guidelines of employers’ rights to be compensated justly, though not monetarily but through a measure of service and integrity. Some of which would be the right to demand for the agreed services expected from an employee at a certain time range per day, to call employee’s attention and push them to perform under their aut hority. Another would be to demand and at the same time punish an employee through expulsion or dismissal for disobedience to carry out work instructions and company rules, inability to display good behavior in the workplace, inconsistency, lack of loyalty and integrity, disclosure of confidential documents, theft of company property and etc (Employee & Employer Rights | Most Recent Publications, n.d.). Indeed, both parties deserve to have rights that are