Pay and Pay Detemination Essay -- Employment, Wages, Salaried Workers

The main intention of this essay is to discuss whether the wage earners and the salaried workers are paid according to market value, state edict, or the operational needs of the business and so forth. Indeed, Roberts (1972) implied that the labour cost associated with the pay matters can be the factors to pay determination, such as, affected to the legal regulations and political environments in specific nation, the dimensions view of labour forces and the decisions of the organization in top management. Why pay is important matters to workers, employers and the governments? Admittedly, pay is one of the most significant determinants of benefits to those who works and earns for living. So, to let the readers to understand more about the issue, the explanation on the key term, pay, will be the first and foremost. Generally, ‘pay’ can be referred to the wage and salary for the workforce, as the return of their efforts which putting into the work tasks. In reference to the Oxford English Dictionary, ‘pay’ has several explanations, and the most relevant will be as ‘†¦give someone money that is due for work done, goods received, or a debt incurred†¦Ã¢â‚¬â„¢(Oxford University Press, 2011). Additionally, from the economic terms, there are four types of factors of production, namely as land, labour, capital and entrepreneurship, functioned to describe the input of resources and used to create goods and services (Lipsey and Chrystal, 1999; Vengedasalam and Madhavan, 2007). In more specific terms, derived from the terms as above, ‘labour’, combined together with the terms of pay, this can be decoded that the labour forces have been charged and received their wages and salaries for the labour services that they provided to the employers. As Edwa... ...: In the early age, as the record from Kahn-Freund (1954 cited in Dickens and Hall ,2003, p.125), he quoted that by a leading academic lawyer’s comment about the limited role of British employment law in the period from 1870 to 1960s, as ‘There is, perhaps, no major country in the world in which the law has played a less significant role in the shaping of industrial relations than in Great Britain and in which today the law and legal profession have less to do with labour relations’. Although such statements verified that the legislation during that time has not comprehensive enough to cover the issues of industrial relations, this implied that the laws can play a vital role to such matter, bring more and more significant impacts when more and more areas are covered. So, the following will discuss about the way s of the state intervention directly and indirectly.