Meaning:

• An economic activity done under an individual or an organization in return for a fixed salary or wage is called an employment. In employment, the work is assigned as per the contract signed.
• For example a teacher working in a school, a mechanic working in someone’s garage, an engineer working in a factory, etc.
• The person or organization that gives job or say employment is called employer and the person who does the job is called employer. Thus, teacher is an employee and school is employer. The school has given employment (job) to the teacher to teach in the school.

Characteristics:

• The employer gets a fix salary at fixed intervals in return of physical or mental labour he provides. For example, a brick layer gets a salary at the end of month to lay the bricks. This is an example physical labour. A teacher teaching the students in a school is providing mental labour and is paid salary every month.
• In employment, the employee may get certain additional benefits such as medical allowances, conveyance, bonus, pension, etc.
• In employment, the employer performs the work assigned by his/her employer as per the contract signed between the two.
• The employer pre-determines the qualification needed for the job, skills, working hour, retirement benefits, etc. for the employee.
• Employment is a dependent activity i.e. employee is dependent on employer for his earnings.
• Both employer and employee are bound to follow rules as per the contract.
• Unlike business, the employee need not make any capital investment.