Different type of trades requires highly skilled labours depending on the project requirement. Any kind of physical and mental work undertaken for monetary gain is included under labour but any work that is done for entertainment or self- satisfaction is not included as labour by economists.
Here are the types of labour services that you need to be familiar with:
- Physical and mental labour– Physical labour is a kind of labour that involves physical strength more than the mental strength. The work of masons and porters come under the category of physical labour. On the other hand, mental labour is the kind of labour that involves the functioning of the brain. Doctors, lawyers, teachers and engineers come under this category.
- Skilled and unskilled labour– Skilled labour is a kind of labour that involves special knowledge, learning and training in a specific field. The labour service of a doctor, engineer or teacher comes under this category. On the other hand, labour in which no amount of training and learning is required is called unskilled labour. The labour service of a porter or cleaner come under this category.
- Productive and unproductive labour-Productive labour adds net worth to the product. On the other hand, unproductive labour service does not add net value to the product. labour producing material goods are productive labour whereas labour producing perishable goods is called unproductive labour service.
Main employment types where labour service is required:
- Permanent or fixed employees-A permanent or full-time employee works for an employer and gets paid directly by that employer. In addition to their wages, they are entitled to receive benefits like health-care, holidays and sick leave, etc.
- Casual employees- Casual employees are used for long or short terms with no guarantee of regular hours. They can be terminated without notice unless covered by an agreement.
- Apprentices or trainee employees– The apprentices learn the trade under an employee and at the end of the training, the apprentice gains a nationally recognized qualification.
- Labour hire staff-The labour service provider employs the worker and the client company pays them for the number of labours and the hours of work. The labour service provider pays wages to the labours. Labours can be hired for short notice.
- Contractors and sub-contractors-They don’t receive wages but invoices for the work done by labours. They work for more than one customer and can subcontract their work to others. They work from their own work front.
Who is a labour service provider?
A labour service provider is a company who provide skilled or unskilled labour service to a client company who need extra labour for their Invidia projects. The workers who can be contractors, field employees, on-hired employees or just employees are hired by the labour service provider. The client company is not their direct employer.
How do labour service providers get paid?
The payment structure of a labour service provider company depends on pay and charge rates. The employees are paid on an hourly basis whereas the client company pays a certain amount to the labour service provider.
Facts to be considered while determining pay rates:
- Industrial agreements
- Statutory on-costs
- Worker’s compensation
- Comparable pay rates of the permanent employees of the client company
Facts to be considered while determining charge rates of labours:
- Personal protective equipment (PPE)
- Payment terms
- Payroll tax
- Casual loading
- Gross margin
- Supplier agreements
- Market competition
In today’s article, we tried to cover up the overview of all kind of labour service and labour service providers. You can go through the article if you want to hire labour for your company or you want to get hired for some company.