Global Work Glossary

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Where are conditions of employment found?

Who determines conditions of employment?

What happens if you break the conditions of employment?

What are conditions of employment

Conditions of employment are the rules, requirements, and stipulations an employer and employee agree to abide by during the employee’s service to the company. Conditions of employment are also known as terms of employment.

The employer and new hire usually agree upon employment conditions at the start of the work arrangement. The employer should detail the conditions in a written contract signed by both parties to establish a transparent and healthy employment relationship.

Examples of conditions of employment include salary, rate of pay, probationary periods, dress code policies, time off, hours of work, work schedule, break policies, company policies, and job-specific responsibilities. These conditions can also encompass employee benefits such as retirement plans and health insurance coverage.

Conditions of employment may also include topics such as non-compete clauses, nondisclosure, and dispute resolution.

Where are conditions of employment found?

Conditions of employment should be detailed in a written employment contract in case legal issues arise. However, the employer can also present conditions of employment in job descriptions, employee handbooks, and policy manuals.

Who determines conditions of employment?

The job market and local labor law have the most influence in determining a company’s conditions of employment. 

In the free market, employers who compete to hire talent must provide appealing conditions of employment to attract and retain them, such as a competitive compensation package. 

As for the influence of employment law, a company’s conditions of employment must abide by the local legal system. Local jurisdictions govern matters such as working conditions, work environment, hours of employment, minimum wage, overtime wages, mandated breaks, worker safety, access to healthcare, and non-discrimination policies. 

In the US, the Department of Labor (DOL) sets the minimum standards for conditions of employment. However, state laws may also have additional benefits and standards that employers must follow. 

What happens if you break the conditions of employment?

Ideally, employer and worker can resolve minor disputes regarding employment conditions through clear communication, much like any other workplace conflict. However, if issues escalate, more severe repercussions can arise.

For an employee, breaking conditions of employment could result in disciplinary procedures or termination of the employee’s contract. For an employer, violating conditions of employment could result in a lawsuit.

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